The Basics of Accounting

Important terminology in accounting includes cash vs. accrual basis, assets, liabilities, and equity.

Credit and debit are the two fundamental aspects of every financial transaction in the double-entry bookkeeping system.

To ensure that a company is "in balance," its assets must always equal its liabilities plus its owners' equity.

Preparing financial statements requires preparing an adjusted trial balance, translating that into financial reports, and having those reports audited.

Transactions include sales, purchases, receipts, and payments made by an individual or organization.