Basics of Accounting
The basics of accounting involve understanding the fundamental principles and concepts that govern financial record-keeping and reporting.
- Assets: Resources owned or controlled by a business, such as cash, inventory, and equipment.
- Liabilities: Debts or obligations that a business must pay, such as loans or accounts payable.
- Equity: The ownership interest in a business, representing the amount of money that would be left over if all assets were sold and all liabilities were paid.
- Revenues: Income earned by a business from its operations, such as sales or services.
- Expenses: Costs incurred by a business to generate revenue, such as salaries, rent, or supplies.
These elements are used to prepare financial statements, including the balance sheet, income statement, and cash flow statement.
For more information on accounting principles, you can visit the INLEO.IO Documentation or explore resources on financial literacy within the INLEO community.
If you have any specific questions or need further clarification, feel free to ask.
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