SECTION 1: INTRODUCTION TO PRINCIPLES OF ACCOUNTS

1. Explaining the concept of accounting

BASIC ACCOUNTING TERMS

Some of the basic accounting terms that you will learn include revenues

• expenses
• assets
• liabilities
• income statement
• balance sheet
• statement of cash flows

You will become familiar with accounting debits and credits as we show you how to record transactions. You will also see why two basic accounting principles, the revenue recognition principle and the matching principle, assure that a company's income statement reports a company's profitability.