Accounting is a very important process for businesses. It is almost impossible to run a business without accounting because the financial position and the performance of a business cannot be determined without accounting information. In other words, without accounting nobody has any idea about the results of a firm’s economic activities. Nobody can say anything about a firm’s success or failure, risk, liquidity, profitability, efficiency without referring to the accounting data. So accounting plays a crucial role in business. It is accepted that accounting is the language of business because accounting translates a business’ economic activities into monetary values to make them easy and possible to interpret. Although the concept of accounting is related to business, we use this concept many times during our daily lives. For example everybody asks questions such as: “Can you account for what you have done today?”, “Can you account for the activities you have performed during this period?”. What we actually want to learn by asking these questions is the list of the activities that have been performed during the day or the period and their results. The same thing is also true for businesses. We basically want to learn what the business has done in a certain period and what are the results of these activities on the performance, risk, liquidity, profitability, and the efficiency of the business.

 

      Since accounting is related to business, it is in order to define what a business is at this point. Business can be defined as a legally formed organization that sells goods or renders services for the purpose of earning a profit. What we mean by saying legally formed is to indicate that there are some legal procedures to form a business, in other words businesses must be officially registered in order to operate. The purpose of profit is the key word that distinguishes a business from other types of organizations. Any organization may sell goods or render services. But, if the organization’s purpose is not profit for carrying out these activities then it is not a business. It may be called a foundation, charity etc., but not a business. General term for these kind of organizations is none-profit organizations. None-profit organizations must also have accounting processes similar to the businesses, but the purpose of this book is to explain the accounting in the businesses.

 

      There are different types of businesses. Businesses can be classified according to their legal forms as described below:

 

      Sole proprietorship: Sole proprietorship is a business that is owned and managed by an individual.  We can see a lot of sole proprietorships around us. A pharmacy run by a pharmacist, a grocery store, a retail store or a barber shop run by the owner, a lawyer’s office run by the lawyer or a doctor’s office run by the doctor, a bookstore run by the owner are the examples of sole proprietorship. From a legal perspective there is no distinction between the owner (proprietor) and the business. In other words, business is the owner. There is no separate legal entity of the business. Since the business is not a legal entity in a sole proprietorship, all the assets and the liabilities (debt) of the business belong to the owner. For this reason the owner has unlimited liability and is personally liable to the third parties for the debt of the business. If the debt of the business cannot be paid, creditors may demand the seizure of the owner’s personal assets to get paid. In terms of taxation, sole proprietorship is not a separate tax entity (tax payer), period income of a sole proprietorship is treated as the business or professional income of the owner, and the owner includes this amount on his/her income tax return and pays personal income tax on this amount.     

 

      Ordinary Partnership: Ordinary partnership can be formed by two or more individuals or legal entities to undertake business activities. When two individuals come together and form a grocery store, it is an ordinary partnership. Likewise, when two corporations come together to build and operate a power plant it is also an ordinary partnership. Like sole proprietorships, ordinary partnerships are not separate legal entities. Here, the business is the partners and all assets and debt of the business belong to the partners. Partners have unlimited liability. They are liable to the third parties for the debt of the business with all of their personal assets. In terms of taxation, ordinary partnerships are not separate tax entities. Period income of an ordinary partnership is treated as the business or professional income of the partners in proportion to their shares and partners are taxed individually on this income. Ordinary partnership is not defined in the Turkish Commercial Code because Turkish Commercial Code does not accept ordinary partnership as a company. In fact ordinary partnership is a contract between the partners and rules related to the ordinary partnership can be found in the Code of Obligations.

 

      Business Companies: Business companies are business associations formed by individuals or legal entities to undertake business activities. Forms and the rules of the business companies can be found in the Turkish Commercial Code. Unlike sole proprietorships and ordinary partnerships, all forms of business companies are separate legal entities. Articles of association must be prepared and signed by the partners or the shareholders in order to form a business company. Since business companies are separate legal entities, all assets are owned by the company and all liabilities are the obligations of the company. So, assets and liabilities belong to the company. The forms of the business companies are presented below:

 

            General Partnership:  A general partnership can be formed by two or more individuals. Legal entities cannot be the partners of a general partnership. In a general partnership, partners have unlimited responsibility for the debt of the company. If the assets of the company do not suffice to pay the debt of the company, creditors may recourse to the personal assets of the partners to get paid. In terms of taxation, general partnerships are not separate tax entities. Period income of a general partnership is treated as the business income of the partners in proportion to their shares and partners are taxed individually on this income.

 

            Limited Partnership:   A limited partnership can be formed by two or more individuals or legal entities. In a limited partnership there are two types of partners. One type is the general partners. General partners have unlimited responsibility for the debt of the company. Only individuals can be general partners. Other type is the limited partners. Limited partners have limited responsibility. Limited partners’ responsibility is limited to the capital invested by them. If the assets of the company do not suffice to pay the debt of the company, creditors cannot recourse to the personal assets of the limited partners. In terms of taxation, limited partnerships are not separate tax entities either. Period income of a limited partnership is treated as the business income of the partners in proportion to their shares and partners are taxed individually on this income.

 

            Limited Liability Company: A limited liability company can be formed by one or more individuals or legal entities. Number of partners cannot exceed 50. A limited liability company has a simpler organization as compared to the corporations. Partners of a limited liability company have limited responsibility similar to the limited partners in a limited partnership. If the assets of the company do not suffice to pay the debt of the company, creditors cannot recourse to the personal assets of the partners. Limited liability companies cannot issue stock or debt instruments such as bonds. Only corporations can undertake some business activities by law, limited liability companies cannot undertake these business activities that are reserved for the corporations by law. In terms of taxation, limited liability companies are separate tax entities. They pay corporate tax on their period income. Limited liability company is the most common form of business in Turkey.

 

            Corporation: A corporation is formed by one or more individuals or legal entities. There is no upper limit for the number of shareholders. Shareholders of a corporation also have limited liability like the partners of a limited liability company. A corporation can undertake any business activity or activities that are not prohibited by law. As explained above, some business activities can only be undertaken by corporations. Corporations have more complex organizations (board of directors, etc.) as compared to the limited liability companies. Corporations can issue stock and debt instruments such as bonds. Corporations are also separate tax entities and they pay corporate tax on their period income.

 

         General partnership and limited partnership are called partnerships, limited liability company and corporation are called equity companies.

          

      Regardless of its form every business must keep accounting records although the recording system varies according to certain criteria as explained later.

 

      Businesses can also be classified according to their area of activity. Generally there are four forms of business in this classification as explained below            :

 

      Manufacturing businesses: Manufacturing businesses manufacture goods by combining raw materials, labor, and other inputs (energy, machinery etc. that are called manufacturing overhead) and sell them. Manufacturing businesses can be categorized according to the goods they produce such as mining, food and beverages, tobacco, textile, wood products, paper and paper products, automotive, aeronautical, chemical products, petroleum, steel, food processing, household appliances, electronics, etc.

 

      Service businesses:  Service businesses render services such as health care, education, transportation, law, accounting, security, food (restaurants and cafes), accommodation (hotels, holiday resorts , etc.), communication, entertainment, etc.

 

      Merchandising businesses: Merchandising businesses neither manufacture goods nor render services. They resale the goods (called merchandise) that they bought manufactured. A manufacturing firm may be a wholesaler, retailer or a distributor. 

       

      Financial service businesses: Financial service businesses provide financial services such as banking, insurance, factoring, leasing, brokerage, etc.

 

      Although the same accounting rules and procedures apply to all four types of businesses there are slight differences in terminology and the chart of accounts used. This book does not deal with the accounting of financial service businesses.

 

      All types of businesses must carry out certain activities to operate. These activities can be grouped into three general categories. These categories are explained below:

 

      Operating activities: Operating activities are the activities that a business must carry out in order to earn revenue. These activities are as follows:

 

            a.  Production and operations: Production and operation activities consist of manufacturing goods, reselling goods purchased manufactured or rendering services.

            b.   Purchasing: Purchasing activities deal with the purchasing of goods or services that are used in manufacturing goods, rendering services or reselling. For example a manufacturing business purchases raw materials to be used in manufacturing, a restaurant purchases food to be served to the customers, a hospital purchases medicine and medical supplies to be used for the patients, a retailer purchases merchandise to be sold to the consumers. Likewise, a manufacturing business may purchase security service to provide security for its plant, a hospital may purchase transportation service to provide transportation for its employees and customers, or a retailer may purchase the service of an advertisement firm to promote its stores. All businesses purchase electricity, gas, water, etc. to carry out their operations.

            c.   Research and development: Businesses carry out research and development activities in order to design a new product, service or a process and to improve the existing ones.

            d.   Selling, marketing and delivery: Selling, marketing and delivery activities include promoting, advertising, selling, and delivering the goods or the services.

            e.   General administrative: General administrative activities are the support activities that a business must carry out other than production and operations, purchasing, research and development, selling and marketing activities. General administrative activities include accounting, finance, information processing, legal services, human resources, janitorial services, public relations, etc.

 

           Effective and efficient management of operating activities are required to achieve profitability and liquidity.

 

      Investing activities: Investing activities deal with spending the funds obtained effectively and efficiently. In this sense investing activities involve purchase and sale of land, building, vehicles, machinery and equipment, furniture and fixtures, and financial instruments such as stocks, corporate bonds, treasury notes, government bonds, etc. Long term investments in the capital of other firms are also financial investments and included in investing activities. Investing activities are expected to contribute directly and indirectly to the profitability and liquidity of a business.

 

      Financing activities: Financing activities deal with obtaining the necessary funds to carry out operating and investing activities and deciding how to use the available funds.

 

      Having described what the business is, types of businesses and the activities of a business, we are ready to define what the accounting is. As we explained above businesses carry out operating, investing, and financing activities. All of them are the economic activities of a business. Accounting is a process that measures, records, classifies, summarizes, and reports the monetary values of the economic activities of a business. Accounting is also an information system. As explained above, this information system provides the necessary information about the economic activities of a firm in terms of monetary values. For example, accounting answers the following questions:

 

      What is the sales revenue in the first quarter?

      What is the total amount of the firm’s money in the bank?

      How much money do the customers owe to the firm?

      How much money does the firm owe to the suppliers?

      What is the amount of the labor cost in this year?

      What is the value of the inventory at the end of December?

      How much cash has been received from the customers during this year?

      What is the amount of the selling and marketing expenses in this quarter?

 

      Now let’s examine the definition of accounting more closely. First of all accounting is a process. There are steps that must be followed in accounting. Steps of the accounting process will be examined in detail throughout this book. Accounting process involves making records. What are recorded in accounting are the monetary values of a firm’s economic activities. Accounting only records monetary values. So, accounting records are always in terms of a currency such as Turkish Lira (TL), US Dollar, or Euro. In Turkey all accounting records must be kept in Turkish and in TL. Accounting does not keep records in terms of any other unit such as kg., meter, number of units, liter, etc. Since all records must be in terms of monetary units (TL in Turkey), monetary values of the activities must first be measured reliably and then recorded. For example, the firm sells 100 units of a product at a price of 120 TL per unit. The total value of this sale is 1200 TL and 1200 TL of sale must be recorded. Accounting does not record any economic activity whose monetary value cannot be measured reliably. Recording is also called bookkeeping because records are made into the books. Classification means grouping the same kind of activities in certain classes. For example, all sales made in Turkey (sales made to the customers inside Turkey) are classified as domestic sales, all exports (sales made to the customers outside Turkey) are classified as foreign sales, all forward-dated checks and notes received from the customers for the goods and services provided are classified as notes receivable, all goods purchased for resale are classified as merchandise inventory. Monetary values of the economic activities recorded and classified are summarized at the end of the accounting period. For example, all domestic sales and foreign sales are summarized as sales revenue, all the receivables for the goods and services provided are summarized as trade receivables. The monetary values of the economic activities recorded, classified, and summarized are reported at the end of the accounting period to be used by the users.

An accounting system consists of the personnel, procedures, technology, and records used by a business to develop accounting information and to communicate this information to decision makers.

Reporting is achieved by publishing the financial statements. There are four basic financial statements. Those are: balance sheet, income statement, cash flow statement, and statement of change in shareholders’ equity. Only the names of the financial statements that are used for reporting are given here, contents of these financial statements will be examined in detail later. Financial statements are the main tools to be used to communicate the results of the economic activities performed throughout an accounting period. Who are the users of the accounting information presented in the financial statements? Users are; investors (current or potential), creditors, suppliers, customers, employees, and the government. Each user has a specific reason to be interested in the financial position, performance, and cash flows of the business. Current investors want to be ascertain whether they have made a wise investment or not. Prospective investors want to decide whether to invest or not to invest in the business. Creditors want to know whether they will receive the principal and the interest payments. Suppliers want know whether they will receive the payments promptly. Customers want to know whether it is a good idea to enter long-term relation with the business if the business is supplying important goods or services to the customer. Employees want to know whether their employment will continue in a foreseeable future and whether they will receive their wages or salaries promptly. Government wants to know the amount of tax that will be levied. All of them depend on the financial position, performance, and the cash flows of the business and the information related to them can be found in the financial statements, which are the outputs of the accounting process. So, without referring to the accounting information nobody can make decision about a business.

Those listed above are the external users of the accounting information. There are also internal users of accounting information. Examples to internal user are: board of directors, chief executive officer (CEO), chief financial officer (CFO), business unit managers, plant managers, store managers, line supervisors. For example head of the human resourses management department uses accounting information to answer the question "can we afford to give our employees a pay raise?", CFO uses accounting information to answer the question "is there sufficient cash to pay dividends?". 

        

 

      a.   Social responsibility concept: Social responsibility concept requires that the accounting process be applied and the financial statements be prepared not for the benefit of certain groups but for the benefit of the whole society. According to this concept accounting information must be unbiased, fair, and reliable (objective). Accounting information must present fairly the financial position, performance and cash flows of a business to fulfill social responsibility. Otherwise some groups gain benefit at the expense of others.

 

      b.   Entity concept: Accounting treats the business as a separate entity from its owners, personnel, and other stakeholders and only records the monetary values of the economic activities of the business, not the personal activities of the owners or other groups related to the business. Even in a sole proprietorship, only the economic activities of the business are recorded. Although a sole proprietorship or an ordinary partnership are not legal entities, but they are separate accounting entities. For example if the owner of a sole proprietorship buys food or other necessities for his/her personal consumption, they must not be recorded because these purchases are not related to the business, they are personal. But if the same person buys merchandise to be sold to the customers, it must be recorded because this purchase is the economic activity of the business, not the owner. It will be a big mistake to confuse the economic activities of the owner with the economic activities of the business.

 

      c.   Going-concern concept: This concept assumes that the business will remain in operation for an unlimited period of time. It also assumes that the business won’t be liquidated in the near future. If we know for sure that the business is liquidated, then there is no point to apply common accounting practices because in this situation everybody is interested only in the liquidation value of the business’ assets.

 

      d.   Periodicity concept: The unlimited life of the business is divided into certain periods and the results of the economic activities in these periods are reported separately. In other words, monetary values of the economic activities are recorded in the period in which they occur. Each period is called an accounting period. There are three types of accounting periods. They are explained below:

 

            (1) Normal accounting period: Normal accounting period starts on 01 January and ends on 31 December. Normal accounting period covers 12 months.

            (2) Special accounting period: Special accounting period also covers 12 months, but it does not start on 01 January and ends on 31 December. For example, it may start 01 September and ends 31 August. Businesses that want to adopt special accounting period must get permission from the Ministry of Finance.

            (3) Partial accounting period: Partial accounting period covers a time period less than 12 months. We encounter partial accounting period in two situations, when the business first started and when the business is terminated. For example, if the business started 15 April, then the first accounting period is 15 April-31 December which is less than 12 months.

 

            There are also interim accounting periods. An interim accounting period is a three-month period. For example, first interim accounting period covers 01 January-31 March for a business that has normal accounting period.

 

         According to the periodicity concept all the revenues and gains must be recorded in the accounting period that they are earned, all the expenses and losses must be recorded in the period that they are are incurred regardless the cash receipts or cash payments. This is also called accrual basis of accounting.

 

      e.   Monetary-unit concept: As explained above, only the monetary values of the economic activities are recorded. So, the monetary value of each economic activity must be measured reliably in order to be recorded. In Turkey all records must be kept in Turkish and TL. If the economic activity is measured in a foreign currency (such as USD or Euro) it must be converted into TL by using the appropriate exchange rate.

 

      f.    Cost concept: This concept states that when assets and services are purchased they must be recorded at cost. For example, a business purchases merchandise and pays a total of 10.000 TL. But this is a bargain price. In fact the current market price of the merchandise is 12.000 TL. The merchandise is recorded as 10.000 TL because this is the cost incurred by the business, the current market price is not the cost to the business because the business paid (or will pay) 10.000 TL, not the current market price.

 

      g.   Reliability concept: This concept states that the economic activities upon which the accounting records are based must be objective and verifiable. The best way to verify that an activity has taken place is to present a document related to the activity. So, every accounting record must be supported by a document. Following items are common documents that are used to support the accounting records. They are also listed in the Tax Procedure Law.

 

            (1) Invoice,  

            (2) Receipts given by the retailers,

            (3) Receipts given by the professionals,

            (4) Payroll

            (5) Transportation tickets

            (6) Bank receipts

           

      h.   Consistency concept: Consistency concept states that the same accounting policies must be applied consistently in consecutive accounting periods. Otherwise, the financial position and performance of the business in these two periods cannot be compared. Consistency requires that the same valuation methods and classifications be used in consecutive periods. For example, the same inventory valuation method or the same depreciation method must be used. If the valuation method or the classifications change from one period to another, the reason for the change and the effect of the change on the financial position and the performance of the business must be fully disclosed.

 

      i.    Full disclosure concept: Full disclosure concept requires that the information on the financial statements be presented relevantly, understandably, and sufficiently in order to make it easier for the users to interpret. All relevant non-financial information that may affect the decisions of the users must be presented in the footnotes. Footnotes are inseparable part of the financial statements and they must be prepared carefully.

 

      j.    Prudence concept: Prudence concept requires that all the risks that affect the business be taken into account when the financial statements are presented. If the risks are not taken into account, users of the financial statements cannot make informed decisions about the business. In accordance with this concept, the businesses must make provisions for probable losses that will arise as a result of their activities. Prudence concept only applies to the probable losses, it does not apply to the probable gains.

 

      k.   Materiality concept: If a piece of information changes the decision of a reasonable financial statement user, it is material. All material information must be presented on the financial statements separately. It is necessary that all material information must be included in the financial statements.

 

      l.    Substance over form concept: This concept states that when accounting records are made the substance of the activities, not their forms must be taken into account. Generally, the substance and form is the same. When they differ, substance must take the precedence. For example, in Turkey mostly forward-dated checks are used. In terms of form they are checks, but their substance is not a check because a check is paid at sight. But a forward-dated check is not paid at sight. The holder of the check cannot cash it until the date on the check. So, in terms of substance a forward-dated check is not a check, but a note that has a maturity.

 

 

      There are four fields of accounting. Fields of accounting are explained below:

 

      Financial Accounting:  Financial accounting is the field of accounting that provides financial information for the users outside the firm. That does not mean that this information is not used by the insiders (managers, employees, etc). Of course, financial accounting information is also used by insiders. Since insiders have a broad knowledge about the business, main focus of the financial accounting information are outsiders such as potential investors, creditors, suppliers, etc. Main output of the financial accounting is the financial statements that contain information about the financial position of the business, results of its economic activities, cash flows, and the change in its financial position. Outsiders can have an idea about the business by examining its financial statements and answer the questions such as: “shall we invest money in this business?”, “shall we give a loan to this business?”, “shall we extent trade credit to this business?”, “shall we enter a long-term contract with this business?”.  Since the users of the financial statements (mainly the outsiders) compare businesses by examining their financial statements, financial accounting records must be made in accordance with certain standards. If all the firms follow the same standards, then it is possible to compare the firms with each other. There are two basic accounting standards that are used worldwide. One of them is the generally accepted accounting principles (called as US GAAP) used by the firms in the United States, another one is the international accounting standards/international financial reporting standards used by other countries including the members of the European Union. Turkey has also accepted international accounting standards/international financial reporting standards and the translation of these standards are published as Turkish Accounting Standards. In Turkey all firms do not have to follow Turkish Accounting Standards. Only publicly held corporations (corporations whose stocks are traded in an organized exchange), financial service businesses such as banks and insurance companies and other firms which have to follow these standards by regulations use Turkish Accounting Standards. Most of the firms use tax regulations in their financial accounting records.

 

      Managerial Accounting: Managerial accounting is the field of accounting that provides information for the users inside the firm. The main focus of managerial accounting is the management of the business. This information is used for decision making, planning, controlling and performance evaluation. Main outputs of the managerial accounting are reports, analyses, and budgets. Questions such as: “shall we launch this product?”, “what must be the variable costs to earn the desired profit?”, “what is our target costs in this year?”, “do we make money on this product?”, “what is the profit of this business line?”, “why we could not reach planned sales in this quarter?” are answered by examining managerial accounting information.

 

      Cost Accounting: Cost accounting is the field of accounting that measures and records cost data. Cost accounting provides information for both financial and managerial accounting.

 

      Tax Accounting: As explained above, financial accounting follows some certain standards. Tax accounting is a version of financial accounting that uses tax regulations. Financial accounting must comply with the accounting standards (such as Turkish Accounting Standards), whereas tax accounting must comply with tax regulations. Financial accounting presents the position of a firm from an economic perspective; tax accounting presents the position of a firm from tax perspective. Most of the firms in Turkey (expect publicly held corporations, financial service businesses such as banks and insurance companies, and some other firms) don’t have separate financial accounting and tax accounting, they only use tax accounting.

 

      According to the Turkish Tax Procedure Law, there are two accounting systems. One of them is the business account basis (single entry bookkeeping), another one is the balance sheet basis (double entry bookkeeping). All first class businesses must adopt balance sheet basis of accounting. Second class businesses may adopt business account basis of accounting. First class businesses are: business companies and businesses whose purchases or revenues are over a certain amount determined by the Ministry of Finance. All other businesses are second class businesses. Second class businesses may also adopt balance sheet basis of accounting if they decide to do so.

 

Sole proprietorship: Åžahıs iÅŸletmesi                               

Ordinary partnership: Adi ortaklık

Code of obligations: Borçlar kanunu

Turkish commercial code: Türk Ticaret Kanunu

Tax procedure law: Vergi Usul Kanunu

Ministry of Finance: Maliye Bakanlığı

Legal entity: Tüzel kiÅŸilik

Asset: Varlık

Liability: Yükümlülük

Business companies: Ticari ÅŸirketler

Articles of association: Ana sözleÅŸme

Business income: Ticari kazanç

Professional income: Serbest meslek kazancı

Partner: Ortak

Partnerships: Şahıs şirketleri

Equity companies: Sermaye ÅŸirketleri

General partnership: Kolektif ÅŸirket

Limited partnership: Komandit ÅŸirket

General partner: Komandite ortak

Limited partner: Komanditer ortak

Limited liability company: Limited ÅŸirket

Corparation: Anonim ÅŸirket

Shareholder: Pay sahibi

Income tax: Gelir vergisi

Corporate tax: Kurumlar vergisi

Wholesaler: Toptancı

Retailer: Perakendeci

Capital goods: Sermaye malları

Forward-dated check: Ä°leri tarihli çek

Note: Senet

Maturity: Vade

Balance sheet: Bilanço

Income statement: Gelir tablosu

Cash flow statement: Nakit akım tablosu

Statement of change in shareholders’ equity: Özsermaye deÄŸiÅŸim tablosu

Liquidate: Tasfiye etmek

Social responsibility concept: Sosyal sorumluluk kavramı

Entity concept: Kişilik kavramı

Going-concern concept: Ä°ÅŸletmenin sürekliliÄŸi kavramı

Periodicity concept: Dönemsellik kavramı

Normal accounting period: Normal hesap dönemi

Special accounting period: Özel hesap dönemi

Partial accounting period: Kıst hesap dönemi

Interim accounting periods: Ara hesap dönemleri

Monetary unit concept: Parayla ölçülme kavramı

Cost concept: Maliyet esası kavramı

Reliability concept: Tarafsızlık ve belgelendirme kavramı

Consistency concept: Tutarlılık kavramı

Full disclosure concept: Tam açıklama kavramı

Prudence concept: İhtiyatlılık kavramı

Materiality concept: Önemlilik kavramı

Substance over form concept: Özün önceliÄŸi kavramı

Revenue : Gelir

Gain: Kazanç

Expense: Gider

Loss: Kayıp (zarar)

Earn: Gelir elde etmek

Incur: Gider veya maliyete katlanmak

Accrual basis: Tahakkuk esası

Financial accounting: Finansal Muhasebe

Managerial accounting: Yönetim muhasebesi

Cost accounting: Maliyet muhasebesi

Tax accounting: Vergi muhasebesi

Business account basis: İşletme hesabı esası

Balance sheet basis: Bilanço esası

First class businesses: Birinci sınıf tüccarlar

Second class businesses: Ä°kinci sınıf tüccarlar