Page 82 - MICROHUB Handbook - ENGLISH

The left column of a T account at its most basic. In the fundamental
accounting equation, the following occurs when recording a
Debit (Dr)
transaction on the debit side:
Assets and costs both rise, Revenue, liabilities, and equity all decline.

A fundamental accounting technique that calls for the dual recording
of each transaction. Every increase has a corresponding reduction,
Double-Entry and every debit has an equivalent credit. This "double-check" aids in
Bookkeeping
finding mistakes and maintaining the stability of the fundamental
accounting equation.

Documents that detail the financial position of a company. The
Financial
Statements balance sheet, profit and loss statement, and statement of cash flows
are the three primary financial statements.

Profit describes the financial benefit realised when revenue generated
from a business activity exceeds the expenses, costs, and taxes
involved in sustaining the activity in question. Profit = Revenue - Costs
Profit Net profit is the amount of money your business earns after
deducting all operating, interest, and tax expenses over a given period
of time. It is the actual profit after working expenses not included in
the calculation of gross profit have been paid.

A record of the specifics of a sale or purchase between a buyer and a
Invoice seller. Typically, this comes with a demand for payment by a certain
future date.

Inventory Current assets waiting to be sold, for example crafted products.

Operating The amount of time it takes for a company to convert its inventory
Cycle into cash.

The money owed to employees of a company in wages, salaries, and
Payroll other forms of remuneration. Payroll taxes and other taxes that are
withheld are also included.

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