Introduction
Hey there, readers! Are you ready to dive into the world of accounting and conquer that pile of receipts? Well, you’ve come to the right place! This Accounting Stuff Cheat Sheet is your go-to guide, designed to provide you with all the essential terms, formulas, and tips you need to become an accounting rockstar. Whether you’re a student trying to ace your exams or a seasoned accountant looking for a quick refresher, this cheat sheet has got you covered!
So buckle up, get your pencils ready, and let’s start learning together!
Section 1: Accounting Basics
What is Accounting?
Accounting is the process of recording, classifying, and summarizing financial transactions to provide information about an organization’s financial performance. It involves tracking income, expenses, assets, and liabilities to give you a clear picture of your financial health.
Financial Statements
The three main financial statements are the income statement, balance sheet, and cash flow statement. The income statement shows your revenues and expenses over a period of time. The balance sheet provides a snapshot of your assets, liabilities, and equity at a specific point in time. And the cash flow statement tracks the movement of cash in and out of your business.
Section 2: Key Accounting Concepts
Debit vs. Credit
Debits and credits are the two sides of an accounting transaction. Debits increase assets or expenses and decrease liabilities or equity. Credits decrease assets or expenses and increase liabilities or equity. Remember, debits are on the left, and credits are on the right!
Accrual vs. Cash Basis Accounting
Accrual accounting records transactions when they occur, regardless of when cash is received or paid. Cash basis accounting only records transactions when cash is exchanged.
Section 3: Common Accounting Terms
Asset
An asset is anything that has value and can be converted into cash. Examples include cash, accounts receivable, and inventory.
Liability
A liability is a debt or obligation that you owe to someone else. Examples include accounts payable, loans, and mortgages.
Equity
Equity is the value of your assets minus your liabilities. It represents your ownership interest in your company.
Section 4: Useful Tables
| Accounting Term | Definition |
|---|---|
| Accounts Receivable | Money owed to you by customers |
| Accounts Payable | Money you owe to vendors |
| Bad Debt Expense | Expense for uncollectible accounts receivable |
| Depreciation | Decrease in value of an asset over time |
| Inventory | Goods held for sale |
| Retained Earnings | Profits kept in the business |
| Unearned Revenue | Revenue collected but not yet earned |
Section 5: Accounting Tips and Tricks
Keep Accurate Records
Accurate records are crucial for good accounting. Make sure to record all transactions in a timely manner and keep all supporting documentation.
Reconcile Your Accounts
Regularly reconcile your bank accounts and credit card statements to ensure that your records are up-to-date and accurate.
Use Accounting Software
Accounting software can save you time and effort. There are many different options available, so choose one that fits your needs and budget.
Conclusion
There you have it, folks! This Accounting Stuff Cheat Sheet is your key to understanding the fundamentals of accounting. Remember, practice makes perfect, so keep using this cheat sheet and you’ll be an accounting pro in no time. And hey, if you’re hungry for more accounting knowledge, don’t forget to check out our other articles and resources. Happy accounting!
FAQ about Accounting Stuff Cheat Sheet
What is a balance sheet?
A balance sheet is a financial statement that provides a snapshot of a company’s financial health at a specific point in time. It shows the company’s assets, liabilities, and owner’s equity.
What is an income statement?
An income statement is a financial statement that shows a company’s revenue, expenses, and net income over a period of time (usually a quarter or a year).
What is a cash flow statement?
A cash flow statement is a financial statement that shows how a company generates and uses cash. It shows the company’s cash inflows and outflows over a period of time (usually a quarter or a year).
What is a general journal?
A general journal is a chronological record of all transactions that affect a company’s financial statements.
What is a ledger?
A ledger is a collection of accounts that track the balances of individual assets, liabilities, equity, revenues, and expenses.
What is a trial balance?
A trial balance is a list of all the accounts in a ledger with their balances. It is used to check for errors in the accounting system.
What is an adjusting entry?
An adjusting entry is a transaction that is recorded at the end of an accounting period to bring the financial statements up to date.
What is a closing entry?
A closing entry is a transaction that is recorded at the end of an accounting period to close the revenue and expense accounts and transfer the net income to the owner’s equity account.
What is a post-closing trial balance?
A post-closing trial balance is a list of all the accounts in a ledger after the closing entries have been recorded. It shows the balances of the permanent accounts (assets, liabilities, and owner’s equity).
What is a chart of accounts?
A chart of accounts is a list of all the accounts that a company uses in its accounting system.