Accounting unit-1

Accounting Unit-1

Terms Creditor: A person or business that has extended creditor or loaded money to another credit or loaded money to another individual or business .Financial position: The financial status of a person or company represented by the assets, liabilities, and net worth or personal equity.Personal net worth. The difference between the cost6 of items owned and debits owned; also referred to as personal equity.

Assets: Items of values owned by a person or business.  Liabilities: Something you owe to someone or a business .Personal equity: Is the person's net worthbalance sheet equation: The basic accounting equation: A= L +OEBalance entity principal: Each business be considered a separate entity.Balance Sheet: A formal financial statement that lists assets, liabilities, and owners equity at "Statement of financial position. Owner's equity: The owners claim against the assets of the company

Equity: Claims against assetsLiquidity order: The order in which assets can be converted to cashCost principal: Assets must be shown on the balance sheet using the of their acquisitionbooking preparing and recording information in accounting