Basic Accounting Course at PwC Namibia Business School

What is Basic Accounting?

Basic accounting refers to the process of recording a company’s financial transactions. It involves analyzing, summarizing and reporting these transactions to regulators, oversight agencies and tax collection entities.

Overview

Accounting plays a vital role in running a business because it helps you track income and expenditures, ensure statutory compliance, and provide investors, management, and government with quantitative financial information which can be used in making business decisions.

Frequently Asked Questions

What is the meaning of basic accounting terms?

Revenue – The actual amount of money a company brings in during a particular time period; gross income. Shareholder Equity – A company’s total assets less its total liabilities; owner’s equity; net worth. Shareholder equity comes from the start-up capital of the business plus retained earnings amassed over time.

What is the basic accounting process?

The steps in the accounting cycle are identifying transactions, recording transactions in a journal, posting the transactions, preparing the unadjusted trial balance, analyzing the worksheet, adjusting journal entry discrepancies, preparing a financial statement, and closing the books.

What is debit and credit?

A debit entry in an account represents a transfer of value to that account, and a credit entry represents a transfer from the account. Each transaction transfers value from credited accounts to debited accounts.

What are the 2 types of accounting?

There are two primary methods of accounting— cash method and accrual method. The alternative bookkeeping method is a modified accrual method, which is a combination of the two primary methods. Cash method—income is recorded when it is received, and expenses are recorded when they are paid.

What is the golden rules of accounting?

Take a look at the three main rules of accounting: Debit the receiver and credit the giver. Debit what comes in and credit what goes out. Debit expenses and losses, credit income and gains.

What is accounting cycle?

The accounting cycle is a collective process of identifying, analyzing, and recording the accounting events of a company. It is a standard 8-step process that begins when a transaction occurs and ends with its inclusion in the financial statements.

Which are real accounts?

A real account is an account that retains and rolls forward its ending balance at the end of the year. These amounts then become the beginning balances in the next period. The areas in the balance sheet in which real accounts are found are assets, liabilities, and equity.

Which is financial account?

A financial account is a component of a country’s balance of payments that covers claims on or liabilities to nonresidents concerning financial assets. Financial account components include direct investment, portfolio investment, and reserve assets broken down by sector.

What is the accounting journal?

An accounting journal is any document used by an accountant to track the transactions of a business. An accounting journal includes all debits and credits that business experiences along with details about the entity on the other side of those transactions.

Is tax part of accounting?

Tax accounting is the subsector of accounting that deals with the preparations of tax returns and tax payments. Tax accounting is used by individuals, businesses, corporations and other entities. Tax accounting for an individual focuses on income, qualifying deductions, donations, and any investment gains or losses.

What is balancing of an account?

If you balance an account, you adjust entries in the account in order to make the credit and debit totals equal. If the growing new venture shows a profit, it is a fiction: a bookkeeping entry put in only to balance the accounts.

What are the 5 function of accounting?

The functions of accounting include the systemic tracking, storing, recording, analysing, summarising and reporting of a company’s financial transactions. Through the functions of the accounting department, the company can maintain a fiscal history that they can make accessible for audits.

Is audit an accounting?

Accountants are responsible for preparing financial documents, monitoring day-to-day bookkeeping for a firm’s operations, and/or preparing and filing tax forms. Auditors verify the accuracy of financial statements and tax filings and may search for clues as to why some figures don’t quite add up.

What is nature of accounting?

Accounting is art of recording, classifying, summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character and interpreting the results thereof.

What is accounting PDF?

“Accounting is the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of a financial character, and interpreting the result thereof”.