What are accounting basics?

[Millie]

I’m new to finance and trying to understand accounting basics from scratch. Can someone explain accounting basics like debits and credits, journal entries, and financial statements in simple terms for beginners?

 

[Selina]

Accounting‍‌‍‍‌‍‌‍‍‌ basics refer to the core concepts that are utilized in recording and managing financial transactions, such as recording income and expenses, keeping track of assets and liabilities, comprehending profits and losses, employing double-entry bookkeeping, and generating simple financial statements like the balance sheet and income ‍‌‍‍‌‍‌‍‍‌statement.

 

[Peter]

Accounting basics are the fundamental principles used to record, track, and report financial transactions accurately and effectively. They include income, expenses, assets, liabilities, equity, bookkeeping, financial statements, and debits & credits, helping individuals and businesses understand their financial health.

 

[Alexender]

The basics of accounting are recording financial transactions, debits, credits, financial statements and monitoring of income, expenses, assets and liabilities. One of the most important notions is the accounting equation, accrual and cash accounting, the concept of using double-entry bookkeeping and keeping proper records to make decisions and comply.

 

[rajat]

Accounting basics The basics are an accounting term that describes the fundamental concepts that are used in the recording and management of financial transactions, including recording revenues and expenses, tracking assets and liabilities, understanding profits and losses, using the concepts of a double-entry bookkeeping system, and the creation of basic financial statements, which include the balance sheet and the income statement.

 

[Olowricha]

The fundamentals of accounting revolve around the Accounting Equation: Assets=Liabilities+ Equity. It entails entering the transactions in form of debits and credits and keeping a General Ledger and preparing the major financial statements such as the Balance Sheet and Income Statement to monitor profitability.

 

[James Miller]

Accounting basics include recording transactions, tracking income and expenses, and preparing financial statements. It helps individuals and businesses understand and manage their finances.