What is Accounting?
1. Accounting
Accounting is the process by which a company tracks its income and expenses to understand where money is coming from and where it is going.
2. Accrual Accounting
This accounting method records transactions at the time they occur, regardless of when the cash is exchanged.
3. Cash Basis Accounting
This method records transactions only when cash is exchanged, not necessarily when the transactions occur.
4. Income
The revenue generated from work performed or goods sold.
5. Expenses
The costs incurred to operate a business.
6. Profit
The remaining funds after expenses are deducted from income.
7. Loss
A situation where expenses exceed income.
8. Assets
Valuable items owned by a person or company.
9. Liabilities
Debts or financial obligations owed to others.
10. Equity
The value remaining after liabilities are subtracted from assets.
11. Revenue
The total income received by a business.
12. Accounts Payable
Obligations to pay for goods or services that have been received but not yet paid for.
13. Accounts Receivable
Funds that are owed to a company for goods or services provided but not yet paid for.
14. Debits and Credits
Accounting entries that track the movement of assets and liabilities to ensure accurate financial records.
15. Income Statement
A report detailing revenue, expenses, and net income over a specific period.
16. Statement of Cash Flows
A report summarizing the cash received and spent during a particular period.
17. General Ledger
A comprehensive record where double entries of transactions are noted.
18. Balance Sheet
A financial statement that summarizes a company's assets, liabilities, and owner's equity at a specific point in time.
19. Chart of Accounts
A categorized listing of all account titles and numbers maintained in a company's ledger.
20. Cost of Goods Sold
The cost of materials used in the production of the items you are selling.
21. Operating Expenses
The costs incurred from running your business, excluding the cost of goods sold.
22. Gross Profit
The revenue remaining after deducting the cost of goods sold from total revenue.
23. Net Income
The profit remaining after all operating expenses are subtracted from the gross profit.
24. Depreciation
The reduction in value of an asset over time.
25. Tax
The contribution paid to the government for services such as building infrastructure, education, and public safety.
1. Accounting
Accounting is the process by which a company tracks its income and expenses to understand where money is coming from and where it is going.
2. Accrual Accounting
This accounting method records transactions at the time they occur, regardless of when the cash is exchanged.
3. Cash Basis Accounting
This method records transactions only when cash is exchanged, not necessarily when the transactions occur.
4. Income
The revenue generated from work performed or goods sold.
5. Expenses
The costs incurred to operate a business.
6. Profit
The remaining funds after expenses are deducted from income.
7. Loss
A situation where expenses exceed income.
8. Assets
Valuable items owned by a person or company.
9. Liabilities
Debts or financial obligations owed to others.
10. Equity
The value remaining after liabilities are subtracted from assets.
11. Revenue
The total income received by a business.
12. Accounts Payable
Obligations to pay for goods or services that have been received but not yet paid for.
13. Accounts Receivable
Funds that are owed to a company for goods or services provided but not yet paid for.
14. Debits and Credits
Accounting entries that track the movement of assets and liabilities to ensure accurate financial records.
15. Income Statement
A report detailing revenue, expenses, and net income over a specific period.
16. Statement of Cash Flows
A report summarizing the cash received and spent during a particular period.
17. General Ledger
A comprehensive record where double entries of transactions are noted.
18. Balance Sheet
A financial statement that summarizes a company's assets, liabilities, and owner's equity at a specific point in time.
19. Chart of Accounts
A categorized listing of all account titles and numbers maintained in a company's ledger.
20. Cost of Goods Sold
The cost of materials used in the production of the items you are selling.
21. Operating Expenses
The costs incurred from running your business, excluding the cost of goods sold.
22. Gross Profit
The revenue remaining after deducting the cost of goods sold from total revenue.
23. Net Income
The profit remaining after all operating expenses are subtracted from the gross profit.
24. Depreciation
The reduction in value of an asset over time.
25. Tax
The contribution paid to the government for services such as building infrastructure, education, and public safety.