This document provides definitions and key concepts related to accounting. It defines accounting as identifying, measuring, recording, and communicating financial information about a business entity. The functions of accounting are to systematically record transactions, protect business property, communicate results, and comply with legal requirements. Useful terminology discussed includes capital, liabilities, assets, and debtors. Capital refers to the owner's investment in the business, while liabilities are amounts owed to others. Assets are resources owned that have monetary value, and debtors are individuals who owe money to a business for goods purchased on credit.