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Accounting Equation for Beginner Level

Share Top Five June 5, 2023

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Accounting equation after recording transactions ( video below)
Accounting Loss on Disposal of Fixed assets for Tax on Income / Profit

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What is 'Accounting' ? Accounting, which is often just called "accounting," is the process of measuring, processing, and sharing financial and other information about businesses and corporations.

What is Financial Management? Financial management is about controlling the flow of money in and out of the organization. Every business needs to sell products or services, pay expenses, balance the books, and file taxes. Financial management encompasses all of this, along with more complex processes, such as paying employees, buying supplies, and submitting reports to government agencies to show they’re obeying applicable laws and regulations.

What is Auditing? Auditing typically refers to financial statement audits or an objective examination and evaluation of a company’s financial statements – usually performed by an external third party. Audits can be performed by internal parties and a government entity, such as the Internal Revenue Service (IRS).

What Is Taxation? Taxation is a term for when a taxing authority, usually a government, levies or imposes a financial obligation on its citizens or residents. Paying taxes to governments or officials has been a mainstay of civilization since ancient times. The term "taxation" applies to all types of mandatory levies, from income to capital gains to estate taxes. Though taxation can be a noun or verb, it is usually referred to as an act; the resulting revenue is usually called "taxes."

What is QuickBooks, and how does it work? QuickBooks is accounting software designed for keeping track of income and expenses. QuickBooks Online has several subscription levels you can choose from. Most of the QuickBooks Online subscription levels also offer multi-currency features. This is useful for businesses working with international customers and suppliers.

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