A Beginner's Guide To Accounting Terms Every Student should Know:

Introduction:

Accounting can feel like an external language.
when you're just starting.Terms like assets,liability might sound threatening,but they are actually simple when broken down.This lead will help you understand important terms in a way that's easy to grasp.

1.Assets

lets say assets is everything a business owes.this include cash,equipment,inventory,and even accounts receivable [ money owed to the business].

Example: If you own a printing shop,your printing machine,chairs and cash register are all assets.

3. Equity

Equity is the owner's share in the business.it's calculated as \text(Equity)=\text(Assets)-\text(Liabilities) 

Example:If your printing shop has 50,000 in asset and $20,000 in liabilities,your equity is $30,000.

4.Revenue

Revenue is the total income a business earns from selling product or service before expenses and removed.

Example:If your pastry shop sells $5000 worth of pastry in a day,that is your revenue.

5.Expenses

Expenses are the cost incurred to run a business,like rent,salaries and supplies.

Example: The cost of printing papers,electricity Bills and Employee wages are all "Expenses"

6. Profit

profit is what remains after subtracting expenses from revenue.

Example: If you make $50,000 in revenue and spend $5,000 on expenses,your profit is $45,000.

Conclusion

Understanding these terms is the foundation of accounting. Master them,and you'll be on your way to financial literacy!

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