Accounting concepts

• Capital - The owners contribution to the business
• Drawings - money or other items the owner takes out of the business for personal use
• Profit = (income-expenses)
• Income - Is the money a business earns through rendering a service, selling goods or by investing money 
• Expense - the cost of running a business
• Liabilities - the debts of a business
• Current Liabilities - Money owed for periods exceeding one year
• Non-Current Liabilities - Money owed for periods less than one year
• Assets - Possessions owned by a business that can be converted into cash
• Accounting Equation no.1

  Asset - Liability = Owners Equity

  Owners Equity + Liability = Asset

  Asset - Owners Equity = Liability
• Accounting Equation no.2

  OE = ( C + I ) - E

  C = ( OE + E ) - I

  I = ( OE + E ) - C

  E = ( I + C ) - OE