Accounting valuation is the process of determining the value of an asset or liability for financial reporting purposes. The value may be based on market value, historic cost, or some other basis. The valuation process requires the use of judgment and professional skills to determine the most appropriate valuation method and estimate the value of the asset or liability.
What are the accounting terminologies?
1. Accounts payable: This is the amount that a company owes to its suppliers for goods or services that have been received, but not yet paid for.
2. Accounts receivable: This is the amount that a company is owed by its customers for goods or services that have been provided, but not yet paid for.
3. Accruals: This is an accounting term that refers to the recognition of revenue or expenses that have been earned or incurred, but have not yet been paid or received.
4. Balance sheet: This is a financial statement that shows a company's assets, liabilities, and equity at a specific point in time.
5. Capital expenditure: This is an expenditure that is made to acquire or improve a long-term asset, such as property, equipment, or buildings.
6. Depreciation: This is an accounting method used to allocate the cost of a long-term asset over its useful life.
7. Equity: This is the portion of a company's ownership that is held by its shareholders.
8. Income statement: This is a financial statement that shows a company's revenue, expenses, and net income for a specific period of time.
9. Liabilities: This is the amount of money that a company owes to its creditors.
10. Revenue: This is the amount of money that a company earns from its normal business activities.
What are the 7 basic accounting categories? 1. Accounts receivable: This account tracks money that is owed to the business by customers.
2. Accounts payable: This account tracks money that the business owes to suppliers.
3. Inventory: This account tracks the raw materials, finished goods, and work-in-progress inventory of the business.
4. Sales: This account tracks money generated by the sale of goods or services.
5. Expenses: This account tracks money spent on the day-to-day operations of the business.
6. Assets: This account tracks the long-term assets of the business, such as property, equipment, and vehicles.
7. Liabilities: This account tracks the long-term debts and obligations of the business, such as loans and leases.
What are the 4 principles of GAAP?
The four principles of Generally Accepted Accounting Principles (GAAP) are:
1. Revenue recognition: Revenue should be recognized when it is earned, and not when it is collected.
2. Matching: Expenses should be matched with the revenue they help generate.
3. Full disclosure: All relevant information should be disclosed in the financial statements.
4. Conservatism: In cases of uncertainty, financial statements should err on the side of caution. What are 3 types of accounts? The three types of accounts in accounting are asset, liability, and equity accounts.
What are basic terms?
The basic terms in accounting are:
Assets: Anything of value that is owned by a company.
Liabilities: Anything owed by a company.
Equity: The difference between a company's assets and liabilities.
Income: Money that is earned by a company.
Expenses: Money that is spent by a company.