Basics 5 min read
Basic Accounting Transactions
In this lesson, we are going to learn how basic transactions move through the accounting equation. What we need to…
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Basics 4 min read
Introducing The Complete Accounting Equation
Remember in Lesson 2 we learned the basic form of the accounting equation as: Assets = Liabilities + Owners Equity…
Basics 4 min read
What is Revenue, Expense and Drawing
In Lesson 2 we defined the terms Asset and Liability. In this lesson we will complete the last of our…
Basics 7 min read
The Accounting Equation
The accounting equation! Probably sounds intimidating. Don’t worry, it really is as simple as ABC. Here’s what it looks like.…
Basics 6 min read
What are Assets and Liabilities in Accounting
The words “asset” and “liability” are two very common words in accounting. Some people simply say an asset is something…
Basics 3 min read
An Overview of Contracts and Why They are Important to Business and Society
Contracts govern all transactions whether they are between firms or between firms and private individuals. Indeed, in most of the…
Basics 6 min read
Need for a Theory of Accounting to Improve the Accounting Profession
Creative Accounting and the Need for a Theory of Accounting The rise of “creative accounting” practices, an euphemism for hiding some unfavorable…
Basics 5 min read
Need for a Uniform and Common Theory of Accounting
The frequent attempts by experts and professionals on having a “theory” that would guide accountants all over the world is…
Basics 1 min read
Working Capital Cycle
Generation and disbursement of cash is carried out in the manner depicted by the following diagram:
Basics 1 min read
Gross Working Capital and Net Working Capital
Gross working capital means the investment in current assets, whereas the Net working capital means the difference of current assets…