chapter 1
    assets: things owned by a business which carried a value,they can be considered as
    economic resources, providing benefits to the business.
    liabilities: amount owed by a business to various parties, they can be considered as
    debts or obligations owned by the business to outside bodies.
    posting: recording trasactions and entering accounts are often called “posting”.
    a trail balance: is therefore defined as a list of balances of ledger accounts worked
    out periodically to test the calculation accuracy of account.
    ---------every account in the ledger is labelled (with debit or credit )
    ---------the items can come in any order
    ---------when the debit balance agree with the credit balances, it confirm
    that there has been a debit entry for every credit entry in the
    posting of the account
    ---------it is an interim summary of the information shown by the
    account,it should carry date.
    ---------the main difference between trial balance statements and balance
    sheets is that in the trial balance, all accounts in the ledger are
    shown as simple balances (debit or credit )whereas in the balance
    sheet, they are shown not as debit or credit balances but as assets
    and liabilities respectively.
    ---------trial balance is unable to detect the following type of errors:
    nominal account: do not represent an asset or a liability. they simply store up
    information needed to work out a profit or loss for the business at the year end.
    nominal account includes: purchases ,sale, rent, wages, lights and other such
    expenses. the nominal accounts will give us the information needed to calculate
    the profit or loss periodically. at the end of a financial year,the nominal accounts
    are written off by transferring the amounts to the trading and profit and loss account,
    leaving he nominal accounts empty.
    journal: the journal,or the book of original entry , is a chronological record,showing
     for each transaction the debit and credit changes in specific ledger accounts.
    the debit and credit entries recorded in the journal are transferred to the accounts
    in the ledger at appropriate intervals. structure of journal: date , accounting titles
    and explanation, ledger page , debit , credit.guangao