accounting terms

• Cost accounting aims to determine the cost of producing goods and services.
• profit is revenue-liabilites
• Asset

  an asset is anything of value that the business owns or controls and that is expected to provide future economic benefits.
• Liability

  a liability refers to a financial obligation or debt that the company owes to external parties.
• Revenue


  , revenue refers to the total income generated by a company through its primary operations, such as sales of goods or services.
• expense


  an expense refers to the costs incurred in the process of generating revenue or maintaining the operations of the company.
• Timelessness

  Information that is only valuable if reported in a timely manner
• Understandability

  Information must be presented in a way that people with knowledge of business can understand
• Relevancy

  Information that if relevent has the potential to affect decision making of the business
• Faithful representation

  Information that must be faithfully represented in the economic event being reported
• Comparability


  Consistent accounting methods should be used that different accounting reports can be identified and understood
• Verifiability

  Information that should be presented accurately with supporting evidence.
• Accrual assumption