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Accounting

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Term
Definition
accounting system   is a designed to collect, document, and report on financial transactions affecting the business  
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manual accounting system   the accounting information is processed by hand  
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computerized accounting system   the financial information is recorded by entering it into a computer  
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GAAP   (generally accepted accounting principles) all accountants follow the same set of rules to prepare financial reports  
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Financial report   are summarized information about the financial status of a business  
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financial accounting   focuses on reporting information to external users. They are prepared for individuals not directly involved in the day-to-day operation of the business  
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management accounting   which focuses on reporting information to management, often referred to as accounting for internal users of accounting information. They are prepared for managers involved in making the day-to-day operating decisions like purchasing, hiring, production,  
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business entity   exsist independently of its owner's personal holding  
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accounting period   is a period of time covered by an accounting report. Can cover one month or three months, or one year  
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going concern   accountants assume that a business has the ability to survive and operate indefinitely  
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