Page 81 - MICROHUB Handbook - ENGLISH

Financial benefits derived from commercial operations like selling
Revenue
products or rendering services.

The monetary value of expenditures for supplies, services, labour,
Costs products, equipment and other items purchased for use by a

business or other accounting entity.

When a company is a sole proprietorship, equity is the worth of the
company that belongs to the owner or shareholders (if a business is
Equity
a corporation). Equity is the amount of value a person has in a
personal asset.

Money that a company owes. When an entity makes a transaction
Accounts
Payable but does not immediately pay cash, this account is frequently
utilised.

Accounts Amounts owing to a company. Although the goods or service has
Receivable been delivered and accepted, payment has not yet been made.

A record of all the assets, liabilities, and equity of a company. A
Balance Sheet balance sheet is a record of a certain financial period. The
(Statement of components of a balance sheet are reported in the order that they
Financial appear on the sheet since the basic accounting equation is assets =
Position)
liabilities + equity.

Assets = liabilities + equity
Basic The basis for both double-entry bookkeeping and accounting itself is
Accounting this formula. Making sure this equation is balanced is one of financial
Equation recordkeeping's core objectives. The graphic depiction of this
equation is a balance sheet.

A class of assets that includes both traditional financial instruments
Cash like cash and digital ones like the amount in bank accounts. It is the
most liquid asset.

The right column of a T account, at its most basic. Using the
Credit (Cr) fundamental accounting equation, the following occurs when
recording a transaction on the credit side: Assets and costs decline,
Increases in Revenue, Liabilities, and Equity

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