Debits and credits are undoubtedly the most commonly used terms in accounting. But before we go into the details of…
In previous chapters of this section “Basics of accounting”, we have learnt that there are five (5) types/categories of accounts…
Income statement is a financial statement that shows an entity’s financial performance during a particular period of time. Owners are…
Balance sheet is a financial statement that shows an entity’s financial position at a particular point in time. By nature,…
Let’s recall the definition of accounting from chapter “Introduction to accounting”. Accounting is the process of recording business transactions in…
Do you remember the story of Ricardo and the definition of accounting from previous chapter “Introduction to accounting”? Let’s reproduce…
What is accounting? Let’s share a little story of a ten year old kid named Ricardo. On every birthday, he…
Purpose of this section “Basics of Accounting” is to make you acquainted with the fundamentals of accounting and basic terminologies.…