.TH "accounting terms" "" "" Definition
.PC
.PP
The following defines several of the more commonly used accounting
terms.
These are included to help you understand the descriptions of \fB/rdb\fR's
accounting package.
.PP
Financial information that records the day-to-day operation of a
business is recorded in an
.IR account .
A simple account is made up of three parts:
.IP \fB1.\fR 0.3i
A title that describes the name of the information being stored
in the account;
.IP \fB2.\fR
The left side of the account, used to record a debit; and
.IP \fB3.\fR
The right side of the account, used to record a credit.
.PP
This simple configuration is referred to as a `T' account because its
shape resembles a capital T:
.DM
                           Title
            ===================================
                Debit        |      Credit
.DE
.PP
A
.I ledger
is the combination of all the accounts maintained by a business.
Transactions are posted to accounts through a
.IR "journal entry" ,
as in the following example:
.DM
        Cash               |     500.00   |
              Sales        |              |   500.00
.DE
.PP
Entries recorded on the far left are debits;
entries indented from the left are credits.
.PP
Accounts fall into the following classifications:
.IP \fBAssets\fR
Anything that is owned and has a monetary value.
.IP \fBLiabilities\fR
Amounts owed to others.
.IP \fBCapital\fR
This is the owner's equity in the business.
It is equal to the total assets minus the total liabilities.
.IP \fBRevenue\fR
Proceeds obtained in the course of doing business.
.IP \fBExpenses\fR
Costs incurred in the course of doing business.
.PP
Further information on accounting terms may be obtained from any
textbook on accounting principles.
Your local public library should contain several examples.
.SH "See Also"
.B
act
.R
.SH Notes
Please note that
.BR /rdb 's
accounting system is meant to serve as an example of data-base programming
with
.BR /rdb .
It is not designed to be an exhaustive accounting package, nor is it
designed to teach you how to perform accounting.
Mark Williams technical support will help you if you have a problem with an
.BR /rdb
command, but not with problems that involve the principles of accounting.
.IR "Caveat utilitor" .