GAAP
It stands for Generally Accepted Accounting Principles. Some countries have their own version of GAAP; some countries follow international GAAP, i.e. International Financial Reporting Standards (IFRS). It is maintained by the International Accounting Standards Board (IASB), which is formerly known as International Accounting Standards Committee (IASC).

ACCOUNTING EQUATION
assets = liabilities + owner's equity

DEBIT / CREDIT
by convention,
Dividend, Expense, Asset, Losses are debited when there is an Increase-In-Value
Gains, Income, Revenue, Liability, Stock-holder's (owner's) equity are credited when there is an Increase-In-Value
just remember DEAL debited & GIRLS credited when there is an IIV

ACCRUAL BASIS vs CASH BASIS
as below :

accrual basis	cash basis
expense is recognized only when it is incurred	expense is recognized only with receipt & payment of cash
revenue is recognized only when it is earned	revenue is recognized only with receipt & payment of cash

FINANCIAL ACCOUNTING vs MANAGERIAL ACCOUNTING
as below:

financial accounting	managerial accounting
it provides data for external users	it provides data for internal users
it is required by law	it is not required by law
it is subject to GAAP	it is not subject to GAAP
it emphasizes on the past	it emphasizes on the future

COST ACCOUNTING vs MANAGERIAL ACCOUNTING
the similarity : both are not subject to GAAP
cost accounting emphasizes on inventory valuation & income determination by cost accumulation.
managerial accounting emphasizes on planning, controlling & decision-making using the cost data.

THE WORK OF MANAGEMENT
1) planning
2) coordinating
3) controlling
4) decision-making

FINANCIAL STATEMENT
1) balance sheet
2) income statement @ profit-loss statement
3) statement of owner's equity

COST
in financial accounting, it is defined as a measurement, in monetary terms, of the amount of resources used for some purposes.
in managerial accounting, it is used in many ways and classified according to
a) their management function :
      (1) manufacturing cost
      (2) non-manufacturing cost @ operating expenses = selling expenses + general/administrative expenses
b) the ease of trace-ability :
      (1) direct cost
      (2) indirect cost , common cost @ joint cost
c) their timing of charges against sales revenue :
      (1) product cost = manufacturing cost
      (2) period cost = non-manufacturing cost
d) their behavior in accordance with changes in activity :
      (1) variable cost
      (2) fixed cost
      (3) semi-variable cost
e) their relevance to control & decision-making :
      (1) controllable & uncontrollable cost
      (2) standard cost
      (3) incremental cost @ differential cost
      (4) sunk cost
      (5) opportunity cost
      (6) relevant cost
f) quality control (QC) :
      (1) quality cost
      (2) prevention cost
      (3) appraisal cost
      (4) failure cost
g) overlapping with other categories :
      (1) prime cost = DM + DL
      (2) conversion cost @ processing cost = DL + OH

direct material
raw materials (O)	+
purchase of materials	+
raw materials (C)	-
		DM
direct labor		DL
overhead
indirect material @ IM	+
indirect labor @ IL	+
cost of idle time	+
rent	+
fringe benefit	+
insurance	+
depreciation	+
		OH
manufacturing cost @ MC		DM + DL + OH
work in progress (O)		+OWIP
work in progress (C)		-CWIP
cost of goods manufactured @ COGM		DM + DL + OH + OWIP - CWIP
finished goods (O)		+OFG
finished goods (C)		-CFG
cost of goods sold @ COGS		DM + DL + OH + OWIP - CWIP + OFG - CFG

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