Track
Accounting Terms
15 free lessons in this track.
Key Accounting Terms
Some common accounting terms with their definitions: 1. Assets : Economic resources owned by the company and used in its operations to generate revenue. 2.…
Read articleA Guide to Assets in Accounting: The Financial Strength Hidden in Your Organization and How to Manage It
A Guide to Assets in Accounting: The Financial Strength Hidden in Your Organization and How to Manage It Assets are the backbone of any business entity; they…
Read articleLiabilities
Liabilities are the financial obligations that a company incurs and must settle with third parties. They represent external sources of financing for the…
Read articleEquity
Equity represents the owners' rights in a company's assets after deducting all obligations (liabilities). In other words, it is the difference between assets…
Read articleRevenue
Revenue is the money a company receives from its core activities, such as selling goods or providing services. Revenue is one of the most important indicators…
Read articleExpenses
Expenses are the costs incurred by the company in order to generate revenue. Expenses represent the consumption of the company’s various resources and include…
Read articleBalance Sheet
The balance sheet is a financial report that presents a company's financial position at a specific point in time. It shows assets, liabilities, and equity, and…
Read articleIncome Statement
The income statement is a financial report that shows a company's financial performance over a specific period, often quarterly or annually. It presents…
Read articleCash Flows
Cash flows are a financial report that shows how cash moves into and out of a company over a specific period of time. The cash flow statement provides…
Read articleFixed Assets
Fixed assets are the properties owned by the company and used in business operations for long periods exceeding one year, and are valued above the annual…
Read articleCurrent Assets
Current assets are properties that can be converted into cash or used in operating activities during one financial cycle, which is usually one year or less.…
Read articleCurrent Liabilities
Current liabilities are financial obligations that must be settled within one financial cycle, usually within one year or less. Current liabilities are a key…
Read articleLong-term Liabilities
Long term liabilities are financial obligations expected to be settled over a period exceeding one year from the company’s financial reporting date. These…
Read articleNet Profit
Net profit is the profit that remains for the company after deducting all expenses from total revenue. It is also known as net earnings or net income, and this…
Read articleAccruals
Accruals are an accounting term referring to financial obligations recorded in a company’s financial statements that have not yet been settled or received by…
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