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Accounting: Difference between revisions
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* '''[[w:Generally accepted accounting principles|Generally accepted accounting principles]]''' ('''GAAP''') refer to the standard framework of guidelines for [[w:financial accounting|financial accounting]] used in any given jurisdiction; generally known as '''accounting standards''' or [[w:standard accounting practice|standard accounting practice]]. These include the standards, conventions, and rules that accountants follow in recording and summarizing and in the preparation of [[w:financial statements|financial statements]]. ( Wikipedia ) | * '''[[w:Generally accepted accounting principles|Generally accepted accounting principles]]''' ('''GAAP''') refer to the standard framework of guidelines for [[w:financial accounting|financial accounting]] used in any given jurisdiction; generally known as '''accounting standards''' or [[w:standard accounting practice|standard accounting practice]]. These include the standards, conventions, and rules that accountants follow in recording and summarizing and in the preparation of [[w:financial statements|financial statements]]. ( Wikipedia ) | ||
* '''[[w:International Financial Reporting Standards|International Financial Reporting Standards]] ([[w:IFRS|IFRS]]) are designed as a common global language for business affairs so that company accounts are understandable and comparable across international boundaries. ( Wikipedia ) | * '''[[w:International Financial Reporting Standards|International Financial Reporting Standards]]''' ('''[[w:IFRS|IFRS]]''') are designed as a common global language for business affairs so that company accounts are understandable and comparable across international boundaries. ( Wikipedia ) | ||
* '''[[w:Inventory|Inventory]]''' or stock refers to the goods and materials that a business holds for the ultimate purpose of resale (or repair) | * '''[[w:Inventory|Inventory]]''' or stock refers to the goods and materials that a business holds for the ultimate purpose of resale (or repair) | ||
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* '''[[w:Working capital|Working capital]]''' or '''operating capital''' is a financial metric which represents [[w:Accounting liquidity|operating liquidity|]] available to a business, organization or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Gross working capital equals to current assets. Net working capital (NWC) is calculated as [[w:current assets|current assets]] minus [[w:current liabilities|current liabilities]]. ( Wikipedia ) | * '''[[w:Working capital|Working capital]]''' or '''operating capital''' is a financial metric which represents [[w:Accounting liquidity|operating liquidity|]] available to a business, organization or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Gross working capital equals to current assets. Net working capital (NWC) is calculated as [[w:current assets|current assets]] minus [[w:current liabilities|current liabilities]]. ( Wikipedia ) | ||
=== Lesson 2 [[w:Job costing|Job costing]] and [[w:overheads|overheads]] === | === Lesson 2 [[w:Job costing|Job costing]] and [[w:overheads|overheads]] === | ||