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In accounting, transactions are debited or credited based on the accounting equation, which states that assets must equal liabilities plus equity. When a transaction increases assets or expenses, it is debited. When a transaction increases liabilities, equity, or revenue, it is credited.
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Explain what accounting is?
In simple terms Accounting is the process(technique) of identifying, recording, summarizing, analysing and interpreting transactions & events.
Can you explain what it means when your account is debited?
When your account is debited, it means that money has been taken out of your account. This could be due to a purchase, a withdrawal, or a fee being charged.
Can you explain the process of how an account is credited and what it means for the account holder?
When an account is credited, it means that money is added to the account. This can happen through deposits, transfers, or other transactions. For the account holder, a credit increases their account balance, giving them more funds to use for purchases, investments, or savings.
Can you explain what "credited to your account" means?
"Credited to your account" means that a certain amount of money or value has been added to your account, increasing the balance or available funds.
Can you explain the process of a transaction being debited to your account and how it affects your balance?
When a transaction is debited to your account, it means that the amount of money involved is subtracted from your account balance. This can happen when you make a purchase, pay a bill, or withdraw cash. Your balance decreases by the amount of the transaction, reflecting the new total amount of money in your account.
Explain what accounting is?
In simple terms Accounting is the process(technique) of identifying, recording, summarizing, analysing and interpreting transactions & events.
How do you explain accounting Cycle?
It is a process to record business transactions in ledger accounts and then generating useful financial information for example income statement, balance sheet.
How do you explain discounting of accounting policies?
Explain discounting of accounting policies
Can you explain what it means when your account is debited?
When your account is debited, it means that money has been taken out of your account. This could be due to a purchase, a withdrawal, or a fee being charged.
Explain the meaning of term journal and state its significance?
An accounting record where all business transactions are originally entered. A journal details which transactions occurred and what accounts were affected. Journal entries are usually recorded in chronological order, and using the double-entry method of bookkeeping.
Explain cost center in the context of Cost Management Accounting?
Explain cost center in the context of cost accounting
Can you explain the process of how an account is credited and what it means for the account holder?
When an account is credited, it means that money is added to the account. This can happen through deposits, transfers, or other transactions. For the account holder, a credit increases their account balance, giving them more funds to use for purchases, investments, or savings.
What are the basic accounting concepts and explain their implications?
what are the implications of accounting principles
How do you explain accounting as a language of business?
Accounting is often referred to as "the language of business."
Explain the principle of substance over form and how it limits the financial statement?
Substance over form is an accounting principle used to ensure that the financial statement reflects the complete, relevant and accurate picture of the transactions and events.
How you can explain accounting is an information system?
Accounting is an information system for measuring, processing and communicating information that is useful in making economic decision. Every business is conducted to make profit. Accounting knowledge is there to assist the business man to assess whether the business is making profit or loss. In accounting brings discipline on how to source money, how to spend and how much to save. Accounting ensures consistency in the treatment of various transactions. Accounting involves gathering of financial data, recording classifying, summarizing and communicate the results to the owners of the business, or to others allowed to receive this information. Accounting should not be confused with Book keeping as Book keeping is the part of accounting concerned with recording of financial data. Book keeping is the process of recording data relating to accounting transactions in the books of accounts.
What problems arise in setting accounting standards?
explain accounting policy involves politics?
