There are various types of break-even but the key one from an entrepreneur's point of view is, the point at which the volume of sales (units or $) covers all the costs associated with making those sales.
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Basic Accounting Concepts
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'Learning about the basic accounting concepts'
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Peter John Baskerville
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The advanced accounting English vocabulary lesson specifically for ESL students. You will hear the words in context, study the meaning of the words and be given examples of how they are used in accounting. 
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A YouTube video that explains and gives examples of accounting English vocabulary, specifically for ESL students.
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Journals in accounting were traditionally called the 'day book'. This is due to the term's derivation from the French word "jour", which means 'day', and the fact that it was expected that journals would record all of the financial transactions that occurred on each particular day. Journals recorded these original transactions in a date and time order as the transaction occured or as soon as possible thereafter. Journal also became known as the 'books of original entry' because it is the entry point for financial information to get into the accounting information system. This system manages this financial data as it is entered into the journal, transferred to the general ledger, summarized in the trial balance and finally presented for stakeholders in the form of financial reports.
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Source documents is an accounting terms to describe the original records that contain the details that substantiate the financial transactions that are entered into the internal accounting system of a business. Typical source documents include sales invoices, cash receipts, cash register slip, credit notes and deposit slip. Source documents provide the documentary evidence of a business deal or accounting event and are a critical part of an audit trail that establishes the authenticity and tracking history of an accounting system's financial records.
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If you’re into crunching numbers, an accounting career might be in your future…and you, more than anyone else, probably know that every penny counts. So, we’ve compiled a list of free accounting tutoring and tutorial sites that range from beginning level to college courses, including software tutorials that don’t cost a dime. If you look for open source software and open source accounting tools, you’ll probably find more solutions as well.
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The 'going concern' concept in accounting is an assumption that the business will continue to exist for the foreseeable future. Accountants adopt the 'going concern' concept so they can prepare realistic financial reports. Without the 'going concern' concept, accountants would have to write off all assets in the current period including long term assets that still have an economic benefit for future periods.
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If there were no tax benefits, would there be any advantages to accrual-basis accounting?◄Click here
Answer (1 of 2): I think there is a fundamental advantage in that accrual accounting generally does a better job of reporting the economic reality of a business's operations.
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Expense classifications and functions in accounting help achieve the purpose of accounting by providing expense information is a more meaningful way for decision makers. Applying expense classifications and functions to financial reports, the decision maker is able to identify the real, primary and underlining profitability of the business as well as identify functional areas where expenses are within or outside of norms or targets.
Philip Verghese 'Ariel's comment,
September 24, 2011 12:44 AM
Peter Great work.
Thanks for sharing Best regards Philip
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An expense in accounting is the money spent or cost incurred in an entity's efforts to generate revenue. Expenses represent the cost of doing business where doing business is the sum total of the activities directed towards making a profit.
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The 'time period' assumption allows accountants to sud-divide the entire economic life of a business into specified time intervals. It is assumed that accounting can manage the varying time-period impacts of financial transactions, and so produce financial statement that accurately reflect the financial performance of business in a specific time period.
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As anyone studying for an accounting degree can tell you, it is a difficult task. With study time often continuing well into the night, getting the degree can be the easy part when compared to such tasks as getting a decent salary or making sense of all the career options. The good news is that students are no longer at the mercy of the nearest accounting firm.
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Bad debts occurs when customer debts due to the business for goods provided or services rendered, become uncollectable. Bad debts are usually a product of customer bankruptcy, company liquidation or where the extra cost of pursuing the debt is greater than the amount of money that the business could posibably collect. When it is determined that a debt is bad, the customer debt is written off in the books of the business. This transaction reduces the value of the accounts receivable in the balance sheet as it increases the expenses of the business in the Income Statement.
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Posting in accounting refers to the process of transferring to the ledgers, the details of financial transactions originally recorded in the journals of a business. Posting is an important step in the double-entry bookkeeping system. Posting transfers the debit and credit aspects of a financial transaction recorded chronologically in the journals to the relevant accounts that are impacted by that transaction in the ledger. Postings take place between the general journal and the general ledger as well as the subsidiary journals to both the subsidiary and the general ledgers.
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The advanced accounting English vocabulary lesson specifically for ESL students. You will hear the words in context, study the meaning of the words and be given examples of how they are used in accounting.
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The accounting equation is foundational to double entry bookkeeping but also a dynamic tool for bookkeepers. It's no great mystery, just a simple formula.
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Most people find that they are interested in learning what is often viewed as the challenging art of bookkeeping but don’t know where to start. While the internet offers numerous and countless resources of information on the how to’s and what to do’s of bookkeeping, you still cannot discount the power of the printed word – yes, books are still being read and yes, as of last check, they still do give comprehensive information about anything you’d like to know, including bookkeeping.
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This answer will help you to understand which accounts to (Dr.-Debit) and which accounts to (Cr.-Credit) when recording a financial transaction in the bookkeeping system. (Dr.-Debit) and (Cr.-Credit) are the key elements of the double-entry bookkeeping system.
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This answer will help you to identify all the steps that take place in the accounting process. Because these steps in the accounting process are repeated every accounting period they are also referred to as the accounting cycle.
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Answer: Most accountants might smile at this question in the same way that they might smile at the statement that "if double-entry bookkeeping is so good, why not record it three-times".
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As an entrepreneur, accountant and vocational trainer, I have compiled a series of 70 articles that deal with financial statements and the accounting system that creates them. See links for details.
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Managerial accounting entails gathering and analyzing the financial data being used by various departments in formulating their strategies and arriving at sound decisions.
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Inventory accounting is a wide topic. I would need to write a book to cover every bit of it. But through this post I am going to squeeze it into 7 bullet points to cover, just the meat (Cost of Good Sold, cash discount on a purchase of inventory, inventory write-off, error on the inventory record, estimating inventory value for interim reporting purpose, gross profit method, and applying dollar value LIFO.)
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This answer will help you to understand the complete process of accounting from identifying a financial transaction through to the Financial Statements. The accounting cycle repeats the exact same process for every financial reporting period.
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