Accounting Made Simple: Accounting Explained in 100 Pages or Less (Financial Topics in 100 Pages or Less)
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Accounting Made Simple: Accounting Explained in 100 Pages or Less (Financial Topics in 100 Pages or Less)
CHAPTER THREE The Income Statement
Mike Piper • Accounting Made Simple: Accounting Explained in 100 Pages or Less (Financial Topics in 100 Pages or Less)
Assets: All of the property owned by the company.
Mike Piper • Accounting Made Simple: Accounting Explained in 100 Pages or Less (Financial Topics in 100 Pages or Less)
Assets = Liabilities + Owners’ Equity
Mike Piper • Accounting Made Simple: Accounting Explained in 100 Pages or Less (Financial Topics in 100 Pages or Less)
So What Exactly Is Accounting?
Mike Piper • Accounting Made Simple: Accounting Explained in 100 Pages or Less (Financial Topics in 100 Pages or Less)
Liabilities: All of the debts that the company currently has outstanding to lenders.
Mike Piper • Accounting Made Simple: Accounting Explained in 100 Pages or Less (Financial Topics in 100 Pages or Less)
Owners’ Equity (a.k.a. Shareholders’ Equity): The company’s ownership interest in its assets, after all debts have been repaid.
Mike Piper • Accounting Made Simple: Accounting Explained in 100 Pages or Less (Financial Topics in 100 Pages or Less)
accounting is the system of tracking the income, expenses, assets, and debts of a business.
Mike Piper • Accounting Made Simple: Accounting Explained in 100 Pages or Less (Financial Topics in 100 Pages or Less)
Current assets are those that are expected to be converted into cash within 12 months or less. Typical current assets include Accounts Receivable, Cash, and Inventory.