Accounting Department Financial Statements Books of Prime Entry Glossary and Further Explanations Accounting - the recording, measuring and analysis of transactions in order to make informed decisions. involves not only books of accounts, but also preparing and interpreting financial statements. Asset - a resource in the business which generates future cash inflows. Book keeping - is the recording of business transactions in books of accounting. involves the use of 'special' books of accounts e.g. ledger, cash book, petty cash book and journals. Books of Accounts - these are specially ruled books used in accounting e.g. petty cash book, cash book and the ledger (the main/principal book of accounts; basically where all transactions end up in). Capital - money or resources invested in a business by the owner, aiming to make profit. The business is regarded as a separate entity, hence all personal resources transferred into the business will be classified as ca...
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