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LSDefine

Simple English definitions for legal terms

accounting

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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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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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