5 Element of Accounting
5 Element Accounting ......................................... Assist .. An asset is something you own, that adds financial value or helps you generate it. Assets can be physical . Cash Account receivable Inventory / stock Equipment Investment .. liability .. A liability is anything that's borrowed from, owed to, or obligated to someone else. Account payable Bank loan Salaries payable Taxes payable .. Rent payable Equity .. Equity in Accounting is generally the book value of a company in its balance sheet. Shares capital Retain earning Owner's capital Reserves .. Equity = Assets - liability Revenue .. Revenue is the income a business earns from selling goods or providing services...