BASIC ACCOUNTING Definition

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BASIC ACCOUNTING normally includes the areas of Debits and Credits; Accounts; Assets, Liabilities, Equity, Revenue and Expenses; and, an accounting system that offers a method for checking, balancing, and reconciling all accounting related transactions in order to produce accurate pictures of the entities financial health. Profit and Loss Reports, Balance Sheets, and Cash Flow Statements are the end result of compiling all the transactions into meaningful, usable information for individuals and business owners alike.

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VENTURE CAPITALIST (VC) is a professional equity-based investor. He/She manages one or more venture capital funds looking for suitable high-reward investments. VC investments are normally in riskier start-up or expansion ventures. Being high-risk investors, venture capitalists normally look for a substantially higher rate of return than might be realized in more traditional investments. See ANGEL INVESTOR.

SEPARATE VALUATION CONCEPT is a recording and measurement rule that relates to the determination of the aggregate amount of any item. In order to determine the aggregate amount of an asset or a liability, each individual asset or liability that comprises the aggregate must be determined separately. This is important because material items may reflect different economic circumstances. There must be a review of each material item to comply with the appropriate accounting standards.

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