Identify and Discuss the Six Steps That Individuals Can Take

question 87

Essay

Identify and discuss the six steps that individuals can take to gain control of their personal finances.

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Definitions:

Accruals

Expenses and revenues that have been incurred or earned but not yet recorded in the accounts.

Accounting Principle

A rule or guideline in accounting that dictates how financial transactions and elements should be recorded and reported.

Adjusting Journal Entries

Adjusting journal entries are made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Debit Portion

The segment of a financial transaction recorded on the left side of an account, indicating an increase in assets or expenses or a decrease in liabilities or equity.