Basic Accounting Principles You Should Know

For example, if a company buys inventory for $500 in cash, the company would credit “Inventory” by $500 and debit “Cash” by $500. This increases the inventory account by $500 and decreases the cash account by $500. A Receipt is a document that proves payment was made.

The accountant must review the documents to make sure they’re complete. Cash Flow is the term that describes the inflow and outflow of cash in a business. The Net Cash Flow for a period of time is found by taking the Beginning Cash Balance and subtracting the Ending Cash Balance. A positive number indicates that more cash flowed into the business than out, where a negative number indicates the opposite.

When first learning about accounting, debits and credits are very difficult to understand. Since more accounting is built off of the double-entry bookkeeping system, each entry will have a debit or credit and many people initially assume the word debit is the same as subtracting or an expense. In actuality, a debit or credit will work differently depending on the financial statement. For example, debits increase assets and reduce liabilities on the balance and on the income statement, credits decrease expenses or increase revenue. The general ledger is the side of the bookkeeping ledger that contains the balance sheet and the income statement accounts.

basic accounting

For that, we need a cash flow statement. These entries show that your accounts receivable (a balance sheet account) has increased by $1,500, and your consulting revenue (an income statement account) has also increased by $1,500. Kartik wants to be certain that he understands what Neeraj is telling him regarding the assets on the balance sheet, so he asks Neeraj if the balance sheet is, in effect, showing what the company’s assets are worth. He is surprised to hear Neeraj say that the assets are not reported on the balance sheet at their worth (fair market value).

An accountant using the double-entry method records a debit to accounts receivables, which flows through to the balance sheet, and a credit to sales revenue, which flows through to the income statement. In most cases, accountants use generally accepted accounting principles (GAAP) when preparing financial statements in the United States. GAAP is a set of standards and principles designed to improve the comparability and consistency of financial reporting across industries. Its standards are based on double-entry accounting, a method in which every accounting transaction is entered as both a debit and credit in two separate general ledger accounts that will roll up into the balance sheet and income statement.

basic accounting

37 Basic Accounting Terms Every Small Business Owner Should Know

It is calculated by taking Revenue and subtracting all of the Expenses in a given period, including COGS, Overhead, Depreciation, and Taxes. Gross Margin is a percentage calculated by taking Gross Profit and dividing by Revenue for the same period. It represents the profitability of a company after deducting the Cost of Goods Sold. For example, cash, inventory, and accounts receivable (see above).

Your accounts payable balances are considered liabilities because that’s what you currently owe your vendors. Loans are also considered a liability. Likewise, if you’re making a credit entry, you will have to make a corresponding opening entry debit entry. This ensures that your accounts remain in balance. While sole proprietors and freelancers may not need to employ double-entry accounting, small and growing businesses will be better served by doing so.

Using generally accepted accounting principles, accountants record and report financial data in similar ways for all firms. They report their findings in financial statements that summarize a company’s business transactions over a specified time period. As mentioned earlier, the three major financial statements are the balance sheet, income statement, and statement of cash flows.

  • Accounting – Accounting is a process of recording, summarizing and communicating financial information.
  • These entries are made whether or not cash is received or paid.
  • Although the IRS allows all businesses to use the accrual method of accounting, most small businesses can instead use the cash method for tax purposes.
  • Statement of cash flows.
  • Accounting and financial applications typically represent one of the largest portions of a company’s software budget.
  • Professional accountants follow a set of standards known as the Generally Accepted Accounting Principles (GAAP) when preparing financial statements.

1. Accounts Payable (AP)

Making two entries keeps the equation in balance. The liabilities are zero and owners’ equity (the amount of your investment in the business) is 💲10,000.

Also, Kartik’s hired few people to deliver the parcels, however, did not pay them (accounts payable), classified as accounts payable. Income Statement does not report the cash position of the company.

The accrual method gives you a more accurate picture of your financial situation than the cash method because you record income on the books when it is truly earned, and you record expenses when they are incurred. Income earned in one period is accurately matched against the expenses that correspond to that period so you see a clearer picture of your net profits for each period. I believe this structure will give a logical reasoning for the gradual build-up of the financial position from scratch, the cash flow movement at different stages, followed lastly by the impact of the financial performance through the income statement. The second point is related to the structure, in terms of the sequence of introducing the financial statements.

basic accounting

Kartik also needs to know that the reported amounts on his balance sheet for assets such as equipment, vehicles, and buildings are routinely reduced by depreciation. Depreciation is required by the basic accounting principle known as the matching principle. Depreciation is used for assets whose life is not indefinite—equipment wears out, vehicles become too old and costly to maintain, buildings age, and some assets (like computers) become obsolete.

In short, it shows a summary of everything that a business possesses, owes, and owns. This is the standard accounting method for most companies. The key difference between cash basis accounting and accrual is when revenue and expenses are recognized. Under the accrual accounting method, you must record expenses and revenue as you accrue them, regardless of when cash for the good or service is actually exchanged. Cash accounting records these transactions as soon as cash changes hands (hence the name).

Now you have 💲20,000 in assets—your 💲10,000 in cash and the 💲10,000 loan proceeds from the bank. The bank loan is also recorded as a liability of 💲10,000 because it’s a debt you must repay.

The income statement and balance sheet are the two primary financial statements, but the cash flow statement is often lumped in with them. An Accounting Period is designated in all Financial Statements (Income Statement, Balance Sheet, and Statement of Cash Flows). The period communicates the span of time that is reported in the statements. To illustrate double-entry accounting, imagine a business sends an invoice to one of its clients.

With thousands of such transactions in a given year, Joe is smart to start using accounting software right from the beginning. Accounting software will generate sales invoices and accounting entries simultaneously, prepare statements for customers with no additional work, write checks, automatically update accounting records, etc.

The most important thing to understand about profit is that it’s not the same thing as cash flow. Your financial documents might show the business has more money coming in than going out, but that doesn’t mean it’s profitable since much of the money could be tied up in accounts receivable or inventory. Then, a trade liability is created on the balance sheet which needs to be paid to the supplier. If the product is used for multiple periods, then it is put on the asset side of the balance sheet as a fixed asset. This fixed asset will then be decreased every month based on the expected lifetime of the fixed asset and the economic usage of it.

Types of Illegal Gambling in the Philippines and Prospect of Online Gambling

It’s always in your best interests to speak to a local criminal defense attorney anytime you are charged with a gambling crime. While all states criminalize gambling to some extent, they also have vastly different penalties associated with gambling crimes. The type of penalty someone faces after being convicted of illegal gambling largely depends upon the state and the circumstances of case, though sentences typically involve many of the same types of penalties. Gambling can be classified as either a misdemeanor offense or a felony, depending on the situation and state law.

The legal option available is to play at gaming hubs that are licensed to operate by the Philippine Amusement and Gaming Corporation (PAGCOR). Responsible Gambling Features (RGFs) are features that online gambling sites use to promote responsible behavior and reduce harm.

We provide you with an extensive analysis that will familiarize you with the largest gambling companies by revenue, by traffic and by number of clients. Additionally, we have compiled a report that ranks the largest world gambling companies by number of land shops and by market value. A study released by the University of Buffalo in November 2014 states Philippines Forex broker Trade99 that the explosion of online gambling in the United States in the past decade has not given rise to more people with gambling problems. A study by the UK Gambling Commission, the “British Gambling Prevalence Survey 2010”, found that approximately 0.9% of the adult population had problem gambling issues, more than shown in a previous study in 2007.

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Enjoy your favourite FIFA World Cup 2018 team at online casino with $200 free bets

However, in 2012, Manitoba Lotteries Minister Steve Ashton estimated that gamblers in Manitoba alone were spending $37 million a year at illegal online casinos. Quebec’s lottery organization Loto-Quebec launched a similar service, known as Espacejeux. While the criminal code of Canada does not prohibit online gambling, it does prohibit any type of gambling at an establishment not owned or licensed by a provincial government. Not withstanding this fact, there are an estimated 1,200 to 1,400 offshore websites that make casino type games and other gambling activities available to Canadians. The court found that SCI had sufficient contact with Canada to be prosecuted under its criminal code.

On January the 24th 2020, legislators in the Verkhovna Rada passed the first stage of the law to reintroduce legal gambling in Ukraine. Despite the 2009 law, many venues continued to operate using legal loopholes for many years. Over 900 such gambling operations were closed down in preparation for a legalised market.

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Our recommended sportsbooks feature mobile suites that are compatible with most Apple, Android, Windows, and Blackberry devices. You can access these web-based applications through your device’s browser (no app download required).

You can also find action on major sporting events like the MLB World Series, NBA Finals, the FIFA World Cup, and world championship boxing matches. There are hundreds of sportsbooks that take bets from Filipinos on a regular basis. A majority of the action focuses on basketball and football, but you citizens have the option to place bets on any sports from around the world.

In September 2006, Sportingbet reported that its chairman, Peter Dicks, was detained in New York City on a Louisiana warrant while traveling in the United States on business unrelated to online gaming. Louisiana is one of the few states that has a specific law prohibiting gambling online. Gambling was prohibited in Ukraine in 2009 after a fire occurred in an illegal gambling hall in Dnipro (former Dnipropetrovsk), in which nine people died.

  • Creation and purpose of the Philippine Amusement and Gaming Corporation (PAGCOR) and the general corporate powers are included.
  • Our expert team has researched the market and found the best bookmakers for Filipinos.
  • Now being your show and choose the sports to bet on be it Live betting Esports or any of your choice.
  • Just make sure you have your deposit info handy – more on that below – because once the sign-up process is complete, you place your first bet.
  • Safe transactions became viable; this led to the first online casinos in 1994.
  • Additionally the report noted a 15% increase in overall gambling since 2007, from a rate of 58% in 2007 to 73% in 2010.

It offers big jackpot games for those chasing the dream, popular classics to appeal to all players, and an assortment of video poker and casino poker games. In fact, it has almost 30 top jackpot games offering you lots of chances to chase that dream prize.

If you’re serious about making the most money betting on sports, it’s important to use multiple websites and shop the odds to find value. NETELLER – One of the best methods for moving money between online betting sites and cashing out winnings is NETELLER.

Players interact with other players through GUIs, which connect to the gambling site’s server in a non-transparent manner. Players’ attitudes towards sites plays an important role in online purchases and customer loyalty.

The executive order starts by giving orders to the Filipino Police and Bureau of Investigation to intensify the fight against illegal gambling. Then goes on and defines illegal gambling as any game scheme consisting of money or articles of value that has not been authorized by the appropriate government agency put in place to regulate and enforce laws. Sports betting is legal and popular in the Philippines although some restrictions do apply. MegaSportsWorld (MSW) is a fully licensed bookmaker that offers a limited form of sports betting, they operate in local betting shops and internet cafes across the country.

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And even today, with lots of cash being thrown around, it poses risks of money laundering. For all these reasons, the state tightly regulates as to who can offer it, where they can offer it, what kinds of games can be offered, and the rules of those games. Any gambling not specifically legalized and authorized by the state as it sees fit is illegal. If gambling is legal, only the types of gambling, in the permitted locations, conducted by state-authorized providers or operators, will be authorized and regulated. State law will lay out exactly –what forms of gambling, where, offered by whom– is legal, and anything not pre-approved by the state will be illegal.

Both agencies regulate bookmakers for the region and fight to combat illegal betting in their respected communities. Other organizations such as the Philippine Sports Commission helps spread sports to Filipino youth and develop athletes VernulsiaMarketing for Philippine national teams. While they don’t regulate the sports they do have a say in how the sports are played and the rules they enforce. You will find hundreds of available betting lines through our suggested sportsbooks.

There are some laws and provisions not listed here, but this is a basic breakdown of the key regulations pertaining to gambling, online gambling, and the development of special economic zones for gambling purposes. To learn more about any available mobile betting options, check the mobile section of your preferred sportsbook. Philippine sportsbooks make it easy to bet your favorite teams and games.

With over 32 various sports to bet on you also get awesome welcome sports bonuses when you first enter the site. Before you know the best online sports betting sites note that online book makers that are licensed underCEZA (Cagayan Freeport), which is located in Luzon, are prohibited from accepting bets from Filipinos. This means that a few of the world’s best online bookmakers are not available to Filipino punters.

If you don’t have any chance of winning something of value, you’re not gambling. Gambling requires that there is a chance you might win something for your bet, whether it’s money, property, or even more chances to play. Further, courts have ruled that you personally don’t need to have placed any wager to be convicted of gambling.

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  •  Kontraktor Punya Skill Dan Kerjanya Lebih Terorganisir

Kontraktor adalah pihak yang berpengalaman dalam hal bangunan , Bahkan Kontraktor juga tahu dengan detail setiap pekerjaan termasuk pilihan material yang tepat.
Di samping itu, kerja kontraktor lebih terorganisir , Berbeda dengan pemborong yang siapa saja bisa mengaku-aku. Tak jarang, sulit pula untuk mengukur standar kualitas kerja pemborong.

  •  Ketepatan Waktu

Ketepatan waktu penting di sini karena semakin lama pembangunan maka semakin banyak uang yang keluar.
Kontraktor sendiri dalam bekerja terikat dengan kontrak yang mencantumkan berapa lama pembangunan diselesaikan , Berbeda dengan borongan yang cenderung mengira-kira saja.

  • Kualitas Hasil

Kontraktor yang baik biasanya akan memberi garansi pengerjaan atas bangunan yang telah diselesaikannya.
Mereka berani menjamin akan memberikan pengerjaan cuma-cuma jika ada masalah dengan bangunan.

  • Tak Perlu Selalu Mengawasi

Kontraktor dapat membantu mengambil alih pekerjaan itu karena profesionalitas kontraktor yang terlatih.


1. Berbadan Hukum

Kontraktor kami adalah kontraktor yang berbadan hukum, punya kantor jelas, dan surat izin resmi.
Karena reputasi kontraktor yang sudah berbadan hukum mudah dilacak dari pekerjaan yang sudah ditanganinya.

2. Mengecek Hasil Kerja

kami akan memberikan foto foto bangunan anda yang sedang dibangun , Anda juga dapat datang dan melihatnya sendiri.

3. Banyak Yang Merekomendasikan

Telah terbukti banyak yang mendukung kami sebagai kontraktor bangunan mereka, Mungkin Anda salah satunya.

4. Anda Dapat Mengetahui Siapa Saja Yang Terlibat

Anda dapat mengetahui siapa saja kontraktor kami bekerja sama.

5. Spesialisasi

Kontraktor kami memiliki banyak spesialisasi dalam hal bangunan

6. Bersedia Di Proses Dalam Kontrak

Kontraktor kami akan membuatkan kontrak kerja. Isi kontrak kerja merupakan hasil musyawarah antara pemilik rumah dan kontraktor

7. Menerima Garansi

Kontraktor kami akan selalu memberikan Jaminan atas hasil kerja. Itulah mengapa kami siap memberikan jaminan atas kualitas hasil bangunan , Garansi ini dapat dibuat pengerjaan bebas-cuma jika ada masalah di kemudian hari.



-Alamat   : Gedung PSM Lt.1 Jl. Setia Budi Gg. Rahmat No. 7

-Telp Ke  : 0853 7272 6338

-Website :

Berikut alasan renovasi bangunan yang harus dilakukan:

1. Kondisi bangunan atau Material sudah rusak.

Alasan saat ini merupakan tantangan, karena jika tidak dilakukan maka rumah tidak lagi nyaman untuk dihuni, tidak aman ditinggali, jadi lama-kelamaan akan semakin sulit fisik dan mental pada Anda.

2. Mengganti bangunan, struktur atau bahan.

Alasan ini biasanya ada untuk melihat perbedaan dengan rumah lain, ada bahan baru akan lebih baik, lebih baik atau lebih suka berganti suasana.

3. Kebutuhan tampilan baru.

Alasan ini sebagai tidak pembeda antara rumah yang satu dengan tetangga lainnya. Sifat manusia yang ingin tampil berbeda dari yang lain akan mendorong mereka melakukan perubahan-perubahan terhadap rumah yang disesuaikan dengan keyakinannya.

4. Kebutuhan ruangan yang lebih baik.

Alasan ini biasanya terjadi seiring bertambahnya anak, keluarga baru, kerabat atau orang lain yang juga tinggal di rumah. Bertambahnya aktivitas anggota keluarga juga menjadi alasan untuk segera merevisi.

Sebagai contoh: Kenginan menyediakan ruang keluarga, Kebutuhan ruang tambahan untuk makan, kebutuhan ruagan kerja, dan sebagainya.

5. Kebosanan dengan Suasana dan Tampilan bangunan lama.

Alasan ini mempengarui pikiran untuk mengganti suasana baru. Seringkali penghuni rumah tidak disadari, karena stres disebabkan oleh kebosanan dengan perkembangan bangunan lama. Untuk itu, dibutuhkan perumahan baru yang bukan dari luar rumah, dibutuhkan dari dalam rumah itu sendiri.

6. Tidak nyaman menempati rumah lama.

Alasan ini membuat penghuni tetap membuat masalah, buruknya pencahayaan dan sebagainya. Sudah punya keinginan untuk melakukan renovasi pada bangunan.

Alasan seperti ini biasanya muncul karena pada perencanaan awal yang kurang tepat, kekurangan informasi dan pengetahuan, minimnya dana kompilasi melakukan pembangunan.

7. Kurangnya persiapan dana untuk melakukan renovasi.

Jika alasan ini terpenuhi maka Anda bisa melakukan keenam alasan di atas. Hal ini sering terjadi, sehingga proses pengerjaan tidak sesuai dengan apa yang Anda harapkan.

Untuk alasan yang sangat darurat, seperti baja ringan rusak, ukuran salah plafon, saluran udara selalu bermasalah dan sebagainya. Anda juga harus melebihkan dana untuk hal yang tidak terjadi, sehingga Anda dapat memperbaiknya

7 Alasan ini dapat Anda pilih bersama kami di Putra Sion Mandiri. Berikut adalah kelebihan dari Putra Sion Mandiri:

1. Dapat dibahas

Salah satu keahlian yang dimiliki Putra Sion Mandiri dapat diandalkan desain bangunan lengkap. Seperti yang mungkin Anda ketahui, mendesain bangunan tidak dapat dianggap enteng karena harus merangcang bentuk dan ruang bangunan dengan tepat. Tentu saja, hal ini bukan perkara yang mudah untuk dirancang bila tidak membutuhkan keahlian yang mumpuni. 

2. Putra Sion Mandiri selalu memilih bahan yang berkualitas

Bahan bahan bangunan yang diperlukan harus berkualitas agar bangunan bisa bertahan dalam jangka waktu yang lama. Bayangkan jika Anda memilih bahan sebagai bahan bangunan tanpa pengetahuan yang cukup, bukan tidak mungkin dalam waktu dekat Anda akan melakukan renovasi kembali yang dapat menguras biaya lebih tinggi dibandingkan sebelumnya.

3. Putra Sion Mandiri mampu menganggarkan biaya matang.

Putra Sion Mandiri juga akan membantu mengganggarkan biaya pembangunan rumah, mulai dari membeli bahan, membayar jasa para pekerja, hingga pembangunan selesai. Hal ini penting untuk dipersiapkan agar keuangan tidak bermasalah. Jika tanpa persiapan yang matang, tidak mungkin pembelian bahan bisa menyebabkan keuangan menjadi ambruk. 

4. Putra Sion Mandiri dapat memperkirakan waktu tempuh mendirikan bangunan atau Renovasi bangunan.

Putra Sion Mandiri berhasil menyelesaikan pembangunan dan waktu tempuh yang diharapkan bisa diselesaikan dengan tepat. Tentu, dalam hal ini Anda bisa mendapatkan gambaran kapan saja yang tepat untuk pindah ke rumah baru. Dengan perkiraan waktu yang tepat akan sangat membantu bagi Anda untuk membeli rumah baru dalam waktu yang pas, misal dengan cara menyewa rumah kontrakan untuk sementara waktu.

5. Putra Sion Mandiri juga Survei Gratis + Gambar

Anda juga dapat menikmati layanan Survei Gratis dan konsultasi tentang bangun baru, renovasi, interior dan eksterior untuk wilayah medan dan sekitarnya.

6. Anda juga bisa mengaktifkan progres kerja

Sebagai klien, Anda dapat melihat progres kerja mingguan gedung atau rumah Anda. Melalui gadget yang dikirimkan oleh tim kerja lapangan Putra Sion Mandiri.



Penggunaan rangka baja ringan, merupakan hal yang belum lama ada di Indonesia, beberapa developer yang menggunakan jenis rangka atap ini, banyak mengadaptasi metode ini dari negeri sakura Jepang.

Hal inilah yang mungkin mengakibatkan masyarakat Indonesia belum begitu familiar dengan rangka atap jenis ini. Akibatnya, banyak masyarakat Indonesia masih enggan menggunakan rangka atap baja ringan ini, padahal rangka ini sangatlah cocok digunakan di wilayah Indonesia yang notabene rawan gempa.

Jika anda termasuk kedalam bagian yang belum mengetahui tentang kelebihan rangka atap jenis ini dibandingkan dengan rangka kayu, maka teruskanlah membaca artikel ini, karena kami akan memberikan hal dasar mengapa anda harus mulai menggunakan rangka atap baja ini sebagai elemen utama dalam kegiatan pembangunan rumah Anda.

5 Alasan Utama Tersebut

1. Rangka Baja Ringan Tidak Akan Di Makan Rayap

Kualitas kayu kurang baik sangat jarang yang menyediakan atau menggunakan kayu oleh karena itu, pemilihan rangka baja ringan merupakan hal mutlak jika rangka bangunan ingin memiliki usia lebih lama

2. Baja Ringan Akan Mempercepat Durasi Atau Waktu Pengerjaan Suatu Bangunan.

Baja ringan banyak menghemat waktu pengerjaan berbagai proyek bangunan yang di kerjakan. Bahkan sebuah rumah dengan type 36 bisa selesai dalam waktu kurang lebih 1 minggu dengan menggunakan rangka baja ringan.

3. Struktur Rangka Baja Ringan Tentunya Lebih Ringan Daripada Jika Anda Menggunakan kayu sebagai Rangka Atap Anda.

Tentunya hal ini bisa mempermudah pengerjaan dan keamanan para pekerja lebih terjamin.

4. Rangka Baja Ringan Hemat Biaya

Baja ringan tidak mudah lapuk. Anda bisa hemat dengan fitur baja ringan ini terutama dalam biaya perawatan bangunan anda

5. Rangka Baja Ringan Memiliki Struktur Atau Material Bisa Di Sesuaikan Dengan Keadaan Geografis Sebuah Daerah.

Bangunan Anda berada di pinggir laut atau pantai, maka rangka baja ringan adalah solusi yang tepat


Harga yang terjangkau mempunyai kontraktor atau infrastruktur yang professional dalam hal pengerjaan baja ringan baja ringan disusun dan di desain dengan strategi dan perhitungan yang akurat.


  • KUNJUNGI KANTOR KAMIALAMAT   : Gg. Rahmat Tj. Sari Kec. Medan Selayang
    NO HP       : 085372726338
    WEBSITE  :