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LSDefine

Simple English definitions for legal terms

accounting

Read a random definition: expurgation

A quick definition of accounting:

Accounting is the process of keeping track of a business's money. This includes recording all the money that comes in and goes out, analyzing the information, and making reports about it. Accountants are the people who do this work. They use special rules to make sure the reports are accurate and follow the law. There are different types of accounting, like financial accounting, which makes reports about a business's overall money situation, and cost accounting, which looks at how much it costs to make a product.

A more thorough explanation:

Accounting is the process of accurately and timely recording, analyzing, summarizing, and classifying financial transactions of a business. This means keeping track of all the money that comes in and goes out of a company. Accountants or Certified Public Accountants usually handle the accounting procedures of a business or person. They use financial records called financial statements to keep track of the company's finances.

There are different types of accounting practices:

  • Financial Accounting: This is the most common type of accounting. It refers to the process of generating interim and annual financial statements.
  • Managerial Accounting: Although this category uses the same information as financial accounting, such information is used to make business decisions, such as budgeting and forecasting.
  • Cost Accounting: Mainly focused on analyzing the costs related to the production of a product by a business to establish its selling price.

Accounting procedures usually follow generally accepted accounting principles (GAAP) or International Financial Reporting Standards (IFRS) when preparing financial statements.

For example, if a company wants to know how much money it made in a year, it would use financial accounting to create an income statement. If a company wants to know how much it costs to make a product, it would use cost accounting to analyze the production costs. These examples illustrate how accounting is used to keep track of a company's finances and make informed business decisions.

accountant | accounts receivable

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THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
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@JumpySubsequentDolphin: wait this is so cute, also where r u going
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JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
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