Purposes of Accounting and Bookkeeping
| Manage operations and assets of enterprise | 企業の経営・財産管理 Kigyo no keiei ・zaisan kanri |
| Measure operational results of enterprise | 企業の業績測定 Kigyo no gyoseki sokutei |
| Watch financial activities/balances of enterprise | 企業の財務状態把握 Kigyo no zaisan jotai haaku |
| Report above to stakeholders | 上記の利害関係者への報告 Joki no rigai-kankeisha eno houkoku |
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Five Elements of Accounting
| Assets | 資産 Shisan |
| Liabilities | 負債 Fusai |
| Equity or Net Assets | 資本 または 純資産 Shihon matawa Jun-shisan |
| Revenues | 収益 Shueki |
| Expenses and Losses | 費用 および 損失 Hiyo oyobi Sonshitsu |
Accounting Equation
| Assets = Liabilities + Equity (Net assets) | 資産＝負債＋資本（純資産） Shisan=Fusai+Shihon(Jun-shisan) |
| Revenue - Expense = Net Income | 収益－費用＝利益 Shueki-Hiyo=Rieki |
Balance sheet and Income statement
| Balance sheet shows the financial balances of a business entity as of a single point in time. |
貸借対照表 Taishaku-taisho-hyo 一定時点での企業の財産状態を表示する Ittei-jiten deno kigyo no zaisan jotai wo hyoji suru |
| Income statement shows the results of the business activities of an entity for a specific period. |
損益計算書 Son-eki-keisan-sho 一定期間の企業活動の業績を表示する Ittei-kikan no kigyo katsudo no gyoseki wo hyoji suru |
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Examples of Balance sheet items and Income statement items
Balance sheet items 貸借対照表項目 Taisyaku-taisho-hyo komoku
1. Assets 資産 Shisan
Account Name |
勘定科目 Kanjo-kamoku |
|---|---|
| Cash | 現金 Genkin |
| Bank | 預金 Yokin |
| Accounts receivable | 売掛金、未収金 Urikake-kin, Mishu-kin |
| Inventory | 商品、棚卸資産 Shohin, Tanaoroshi-shisan |
2. Liabilities 負債 Fusai
Account Name |
勘定科目 Kanjo-kamoku |
|---|---|
| Accounts payable | 買掛金、未払金 Kikake-kin, Mibarai-kin |
| Loans | 借入金 Kariire-kin |
| Withholdings | 預り金 Azukari-kin |
3. Equity or Net assets 資本または純資産 Shihon matawa Jun-shisan
Account Name |
勘定科目 Kanjo-kamoku |
|---|---|
| Common stock | 資本金 Shihon-kin |
| Retained earnings | 利益剰余金 Rieki-joyo-kin |
Income statement items 損益計算書項目 Son-eki-keisan-sho komoku
4. Revenues 収益 Shueki
Account Name |
勘定科目 Kanjo-kamoku |
|---|---|
| Sales | 売上 Uriage |
| Interest income | 受取利息 Uketori risoku |
5. Expenses and losses 費用および損失 Hiyo oyobi sonshitsu
Account Name |
勘定科目 Kanjo-kamoku |
|---|---|
| Cost of goods sold (COGS) | 売上原価 Uriage-genka |
| Salaries | 給与手当 Kyuyo teate |
| Communication | 通信費 Tsushin-hi |
| Legal welfare | 法定福利費 Hotei-fukuri-hi |
| Miscellaneous loss | 雑損失 Zatsu-sonshitsu |
6. Net income 純利益 Jun-rieki
Account Name |
勘定科目 Kanjo-kamoku |
|---|---|
| Net income | 当期（純）利益 Toki(jun)rieki |
| Net loss | 当期（純）損失 Toki(jun)sonshitsu |
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Bookkeeping and Five Elements of Accounting
Dr. 借方 Karikata |
Cr. 貸方 Kashikata |
|---|---|
| Increase of an asset 資産の増加 Shisan no zoka |
Increase of a liability 負債の増加 Fusai no zoka |
| Increase of an expense or a loss 費用損失の増加 Hiyo sonshitsu no zoka |
Increase of a revenue 収益の増加 Shueki no zoka |
| Decrease of an liability 負債の減少 Fusai no gensho |
Decrease of an asset 資産の減少 Shisan no gensho |
| Decrease of a revenue 収益の減少 Shueki no zoka |
Decrease of an expense or a loss 費用損失の減少 Hiyo sonshitsu no gensho |
| Decrease of equity 資本の減少 Shihon no gensho |
Increase of equity 資本の増加 Shihon no zoka |
