How to explain basic accounting?

[Samuel]

Can someone explain accounting in simple words and not complicated accountancy language?

 

[Lucas]

Accounting is the process of recording, summarizing, and reporting a business’s financial transactions to track income, expenses, assets, and liabilities.

 

[jainnorton]

Basic accounting is defined as a process whereby financial transactions of a company are recorded, summarized and reported. It adheres to the principle that there must be equal assets and liabilities and equity which gives a clear understanding of financial health in terms of balance sheets and income statements.

 

[Mayank]

Basic accounting is explaining how businesses track money. It involves recording transactions, understanding income and expenses, preparing financial statements, and managing budgets. It helps in making informed decisions, ensuring accuracy, and maintaining transparency in financial activities.

 

[brook]

Basic accounting can be described as a procedure, in which financial transactions of a business organization are documented, summarized and presented. It complies with the rule of equal assets and liabilities and equity that provides a clear picture of financial health in terms of balance sheets and income statements.