Assets
An Asset is an item of value to the business which it can use in its operations.
Current Asset
· Cash at bank
· Inventory
· Account receivable
Non-current Assets
· Land ,Building
· Machinery or machines
· Motor vehicles
· Office equipments
· Computer
Liabilities
A Liability is an obligation of the business to eventually discharge or repay.
Current liability (within 12 months)
· Account payable
Non-current liability (after or beyond 12 months)
· Loan /Mortgage
Owners’ Equity
The owner’s equity is what the owner has put into or invested in the business, it is what the business is worth.
· Capital ,Drawing
Revenue
Revenue is the earning, proceeds or takings from the operations of a business. Same as Income.
· Sales
· Fees
· Commission
· Interest
· Rent
Expense
Expense is what is incurred or spent in making the sakes and expenditure in running the business.
· Cost of goods
· Wage(Salaries)
· Rent
· Postage
· Stationary
