Journel entry : The recording of financial data (taken usually from a journal voucher) pertaining

to business transactions in a journal such that the debits equal credits. Journal entries provide an audit trail and a means of analyzing the effects of the transactions on an organization's financial position. Accounts payable are amounts a company owes because it purchased goods or services on credit from a supplier or vendor. Accounts receivable are amounts a company has a right to collect because it sold goods or services on credit to a customer. Accounts payable are liabilities. Accounts receivable are assets

Cash Flow Statement 1. Cash Flow Statement exhibits inflows and outflows of cash and cash equivalents alone. 2. While preparing a Cash Flow Statement, cash refers to cash in hand, cash at bank (demand deposits) and short-term investments (i.e., Cash & Cash equivalents alone).

Fund Flow Statement 1. Fund Flow Statement exhibits inflows and outflows of funds (i.e., working capital) alone. 2. While preparing a Fund Flow Statement, fund refers to the working capital (i.e., Current Assets and Current Liabilities alone).

Capital expenditures (CAPEX or capex) are expenditures creating future benefits. A capital expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing fixed asset with a useful life extending beyond the taxable year. FIFO stands for first-in, first-out, meaning that the oldest inventory items are recorded as sold first but do not necessarily mean that the exact oldest physical object has been tracked and sold. LIFO stands for last-in, first-out, meaning that the most recently produced items are recorded as sold first. Since the 1970s, some U.S. companies shifted towards the use of LIFO, which reduces their income taxes in times of inflation, but with International Financial Reporting Standards banning the use of LIFO, more companies have gone back to FIFO Accounting Definition Preparation of accounting records Finance Efficient and productive management of assets and liabilities based on existing information Purpose Measuring, preparation, analyzing, and interpretation of financial statements. To collect and present financial information. Decision making regarding working capital issues such as level of inventory, cash holding, credit levels, financial strategy, managing and controlling cash flow.

Goal

To see how the company is performing, to monitor day to day accounting operations, and for taxing.

To forecast the future performance of the business.

Tools

Balance sheets, profit and loss ledgers, positional declarations, and cash flow statements.

Performance reports, ratio analysis, risk analysis, estimating break evens, returns on investment, etc. Revenues are acknowledged during the actual receipt in cash as in cash flow and the expenses are acknowledged when the actual payment is made as in cash outflow.

Determination of funds

Revenue is acknowledged at the point of sale and not when it was collected. Expenses are acknowledged when they are incurred than when they are paid.

Revenue expenditure incurred on fixed assets includes costs that are aimed at 'maintaining' rather than enhancing the earning capacity of the assets. These are costs that are incurred on a regular basis and the benefit from these costs is obtained over a relatively short period of time - See more at: http://accounting-simplified.com/financial/fixed-assets/capital-and-revenue-expenditure.
Accounts payable are amounts a company owes because it purchased goods or services on credit from a supplier or vendor. Accounts receivable are amounts a company has a right to collect because it sold goods or services on credit to a customer. Accounts payable are liabilities. Accounts receivable are assets.