Financial Accounting

ACCOUNTING ELEMENTS

The three major elements of accounting are: assets, liabilities, and capital. Assets refer to resources owned and controlled by a business; liabilities refer to...

Category | Financial Accounting

Asset Accounts

Assets refer to resources owned and controlled by an entity. Technically, an asset is defined as a “resource controlled by an entity as a...

Category | Financial Accounting

Liability Accounts

Liabilities refer to economic obligations of an entity. A liability is technically defined as a “present obligation of an enterprise arising from past transactions...

Category | Financial Accounting

Revenue Accounts

Revenues (or income) refer to economic benefits received from business activities. Revenues are “increases in economic benefits during the accounting period in the form...

Category | Financial Accounting

Expense Accounts

Expenses refer to costs incurred in conducting business. Technically, expenses are “decreases in economic benefits during the accounting period in the form of decreases...

Category | Financial Accounting

INCOME STATEMENT

The “Income Statement” is a financial statement that summarizes a company’s revenues and expenses and the resulting net income. It is the first financial...

Category | Financial Accounting
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