5 Element of Accounting

 

 

                                 5 Element Accounting

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Assist ..

• An asset is something you own, that adds financial value or helps
  you generate it. Assets can be physical .

1. Cash
2. Account receivable
3. Inventory / stock
4. Equipment 
5. Investment ..

liability ..

• A liability is anything that's borrowed from, owed to, or obligated to someone else. 

1. Account payable
2. Bank loan
3. Salaries payable
4. Taxes payable ..
5. Rent payable 

Equity ..

• Equity in Accounting is generally the book value of a company in its balance sheet.

1. Shares capital 
2. Retain earning
3. Owner's capital
4. Reserves ..
5. Equity = Assets - liability 

Revenue ..

• Revenue is the income a business earns from selling goods or providing services during a particular period.

1. Sales revenue
2. Service revenue
3. Interest income
4. Rental income ..

Expenses ..

• Expenses, both operating and non operating, are - everything that costs a company to make money called expenses .

1. Salaries expenses
2. Rent expenses
3. Utility expenses
4. Depreciation expenses
5. Interest on loan ..