Basic Accounting Principles

Accounting has been defined as, by Professor of Accounting at the University of Michigan William A Paton as having one basic function: "facilitating the administration of economic activity. This function has two closely related phases: 1) measuring and arraying economic data; and 2) communicating the results of this process to interested parties."

As an example, a company's accountants periodically measure the profit and loss for a month, a quarter or a fiscal year and publish these results in a statement of profit and loss that's called an income statement.  These statements include elements such as accounts receivable (what's owed to the company) and accounts payable (what the company owes). It can also get pretty complicated with subjects like retained earnings and accelerated depreciation. This at the higher levels of accounting and in the organization.

Much of accounting though, is also concerned with basic bookkeeping. This is the process that records every transaction; every bill paid, every dime owed, every dollar and cent spent and accumulated.

But the owners of the company, which can be individual owners or millions of shareholders are most concerned with the summaries of these transactions, contained in the financial statement. The financial statement summarizes a company's assets. A value of an asset is what it cost when it was first acquired. The financial statement also records what the sources of the assets were. Some assets are in the form of loans that have to be paid back. Profits are also an asset of the business.

In what's called double-entry bookkeeping, the liabilities are also summarized. Obviously, a company wants to show a higher amount of assets to offset the liabilities and show a profit. The management of these two elements is the essence of accounting.

There is a system for doing this; not every company or individual can devise their own systems for accounting; the result would be chaos!

Social Networking Websites: How to Find Them

Social Networking Websites:  How to Find Them

Each day, in the United States, millions of Americans communicate with each other online. In addition to communicating with other Americans, many are communicating with those on the other side of the world. This communication is due, largely in part, to online social networking websites.  If you are interested in joining the growing number of internet users who use social networking websites, you will have to find a network to join.

When it comes to finding social networking websites, you have a number of different options.  Perhaps, the easiest way to find a social networking website is by performing a standard internet search. You may want to search with the words social networking or social networking websites. Whichever search phrase you choose, there is a good chance that you will be presented with a long list of websites. 

You can also find and familiarize yourself with social networking websites by talking to those that you know. The internet, as well as social networks, has rapidly increased in popularity. That popularity means that there is a good chance that one of your relatives, friends, coworkers, or neighbors has used a specific social networking website in the past.  In fact, many may have even used more than one.  If you know someone who has, you will want to ask them their recommendations.  You will find that most social networking websites come highly rated, but there are some out there that may not even be worth your time.

In addition to speaking to those that you actually know, you can also seek recommendations from those that you do not personally know.  You can do this online.  Online, you should be able to find a number of websites that discuss social networking sites.  Many of these websites have reviewed a collection of social networking sites.  In addition to reviews and other articles, you should also be able to speak with other internet users on online message boards.  Like speaking to one of your friends, many internet users would be more than willing to let you know what social networking websites are worth the time and which ones are not.

Although it is nice to receive recommendations from those that you know or other internet users, you are advised to make your own decision.  Whether or not a social networking website comes highly recommended, you are still encouraged to check it out first.  A large number of social networking websites are free to use; therefore, there are no risks associated with giving the site a try. Despite the fact that most online social networking sites are free to use, there are some that you must pay for.  A large number of these websites offer free trials.  Even if the trial period is only for a few days, you should easily be able to get a feel of the site’s environment and determine whether or not it is right for you.

In your search for a social networking website, whether you perform your own internet search or rely on recommendations from others, you should be able to find a number of popular websites. Those websites may include, but should not be limited to, Yahoo! 360, MySpace, Classmates, and Orkut. The good news about this is that if you are not satisfied with the social networking website you joined, you don’t have to worry; there are many more available for you to choose from.

PPPPP

Word Count 567