The primary objectives of accounting is to keep track of transactions and recording revenue and expenses are important business processes often assigned to an accounting department or a financial manager. Accounting is a business discipline that allows companies to record analyze and retrieve critical financial information that can be used to determine a company's financial status and provide reports and insights needed to make sound financial decisions.
There are four basic terms in accounting they are assets, liability, revenue , and expenses. Assets are economic resources. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset. Simply stated, assets represent ownership of value that can be converted into cash although cash itself is also considered an asset. Liablilty is An obligation that legally binds an individual or company to settle a debt. When one is liable for a debt, they are responsible for paying the debt . Revenue is the income that a company receives from its normal business activities, usually from the sale of goods and services to customers. Then finally, expenses is an outflow of cash or other valuable assets from a person or company to another person or company. This outflow of cash is generally one side of a trade for products or services that have equal or better current or future value to the buyer than to the seller. An expense is an event in which an asset is used up or a liability is incurred. In terms of the accounting equation, expenses reduce owners'