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