The document provides an overview of accounting, detailing the process of recording, summarizing, and reporting financial transactions for businesses and individuals. Key terminologies include assets, expenses, capital, revenue, and liabilities, each with definitions and examples. It highlights the importance of these concepts in understanding a business's financial health and operations.

1. INTRODUCTIONTO ACCOUNTING
• Process of recording, summarising and reporting financial
transactions of a business or individual.

2. TERMINOLOGIES OF ACCOUNTING
• Assets
• Expenses
• Capital
• Revenue
• Liabilities
• Debtors
• Creditors
• Bed debt
• Drawings
• Outstanding expenses
• Accrued income
• Insolvent

3. ASSETS
Assets are resources owned by an organ on or individual that have economic value and can provide
future benefits.These can be used to generate revenue, support operations.
EXAMPLE OFTHE ASSESTS
• Vehicles
• Machinery
• Furniture
• Stocks
• Bonds
• Savings account

5. EXPENSES
In accounting,“expenses” refer to the costs incurred in the process of earning revenue.They
are the expenditures that a business or individual makes to operate, produce goods or services,
and generate income.
EXAMPLE OF EXPENSES
• Interest
• Operating Expenses
• Wages

6. CAPITAL
Capital is the resources that owners invest in a business to start or grow it. It represents the financial
foundation of the business.
EXAMPLE OF CAPITAL
• Cash investment
• Equipment
• Property
• Shares

7. REVENUE
Revenue is the total income a business earns from selling its goods or services before any
expenses are deducted.
EXAMPLE OF REVENUE
• Product sales
• Service income
• Interest income
• Rental income
• Subscription fees

8. LIABILITIES
Liabilities is a kind of financial obligation that a business has to pay at the end of an accounting period to a
person or a business.
EXAMPLE OF LIABILITIES
• Salary payable
• Bank loan
• Taxes payable
• Unearned Revenue