Business and Accounting Basics

When we talk about the purpose of accounting, it is more than just giving a definition of accounting. We can define accounting as the process of identifying, measuring and communicating economic information to provide owners of business and others with useful information to help them assess performance and make informed …

Financial ratios are calculated to analyse the performance of a business using figures in the financial statements. When learning the principles of accounting, you should be aware of the figures presented in the Income Statement and Balance Sheet. You can use the results of financial ratios to make internal and …

It is beneficial for students to learn a simple accounting definition to answer any questions that follow in the basic accounting course. This will ensure that you understand the topics of accounting easily as you go deeper into the lessons. What is a simple accounting definition? A simple accounting definition …

Capital is assets invested into a business and the term describes the liquid assets available to spend. Generally, both fixed and current assets represent capital but stakeholders are more concerned about the continuity of the business using cash and assets that can be turned into cash quickly to pay liabilities …

The Income Statement is the next step in the Accounting Cycle after the Trial Balance is finalised. It is one of 3 financial statements that is prepared by an accountant. The other 2 are Balance Sheet and Cash Flow Statement. It reports whether a business makes a profit or a …