Basic Accounting Conditions
Basic Accounting Concepts Understanding basic accounting concepts is a must for every small business owner. E ven if you have an accountant that takes care of that “accounting stuff”, you need to know accounting basics such as debits and credits and some accounting terminology. A ccounting is setting up a system of recording and summarizing financial transactions in such a way that they can later be analyzed or used to communicate with others. Foundation Of Basic Accounting Concepts: The basic accounting equation is the foundation of all basic accounting concepts. The financial position of all companies both large and small is measured by the following equation: For sole proprietorships: Assets = Liabilities + Owner’s Equity For corporations: Assets = Liabilities + Stockholders’ Equity Assets are what a company owns Liabilities are what a company owes Owner’s Equity or Stockholder’s Equity is the diffe
