Online Business Accounting

what is the basic concept in accounting?

Public Comments

1. Answer 1: Inflow - Outflow = Profit/Loss ? Answer 2: It all adds up. Answer 3: By Ogden Nash (I think) Man was never meant To remember or invent What he did with every cent.
2. Accounting will give u details of what you have earned, what have u spent, what r ur assets and what r ur liabilities. in short, it will let u know whether u r earning enough or not to keep ur expenses going :|)
3. Cash Flow and Disbursement
4. The most common principles they teach you in accounts is this.... Profit = income - expenses Capital = Assets - liabilities Accounting is a HUGE subject, but it is more or less revolved around the ones mentioned above.
5. I would say there are two principle goals of accounting. One is to provide a picture of the economics of a business. Is the business making money? Two is to measure solvency of a business. Do I have enough cash flow to operate? Note the distinction that you can have an economic business model (make money) but not be able to meet future financial obligations (debt payments, capital requirements).