Accounting Basics - Session 2

Front

Double-entry system

Back

Every transaction affects two accounts.

Front

Assets

Back

Resources owned by a business.

Front

Liabilities

Back

Obligations owed to outsiders.

Front

Equity

Back

Owner's claim on assets.

Front

Revenue

Back

Income from business operations.

Front

Expenses

Back

Costs incurred to generate revenue.

Front

Journal entry

Back

Recording of transactions in books.

Front

Ledger

Back

Collection of all accounts.

Front

Trial balance

Back

List of all accounts with balances.

Front

Financial statements

Back

Summary of financial performance.