@accounting.knowle8: Accounting is called the language of business because it helps us track, explain, and understand money. Here are 20 key terms simplified 👇 1️⃣ Balance Sheet – A financial snapshot of what a business owns (assets), owes (liabilities), and its worth (equity). 2️⃣ Income Statement – Shows profit or loss over a period (revenues – expenses). 3️⃣ Cash Flow Statement – Tracks cash in and cash out. 4️⃣ Assets – What the business owns (cash, buildings, machines). 5️⃣ General Ledger – The “master book” of all financial transactions. 6️⃣ Liabilities – What the business owes (loans, bills). 7️⃣ Expenses – Costs of running the business. 8️⃣ Equity – Owner’s share or value in the business. 9️⃣ Revenue – Money earned from sales or services. 🔟 Fiscal Year – The 12-month financial reporting period (not always January–December). 1️⃣1️⃣ Accounts Payable – Money the business owes suppliers. 1️⃣2️⃣ Accrual Accounting – Records income/expenses when they happen, not just when cash moves. 1️⃣3️⃣ Cash Accounting – Records income/expenses only when money is received or paid. 1️⃣4️⃣ Chart of Accounts – A list of all accounts used in a business. 1️⃣5️⃣ Journal Entry – The record of a transaction in the books. 1️⃣6️⃣ Profit – What’s left after subtracting expenses from revenue. 1️⃣7️⃣ Trial Balance – A check to ensure debits = credits. 1️⃣8️⃣ Accounts Receivable – Money customers owe the business. 1️⃣9️⃣ Depreciation – Spreading the cost of an asset (like a car or machine) over its useful life. 2️⃣0️⃣ Amortization – Like depreciation, but for intangible assets (like patents, software, loans). 💡 Why this matters: Every business, big or small, uses these terms daily. If you understand them, you understand how money really works in business. 👉 Which of these terms do you use often in your work or studies? 💬 Comment your favorite term below!

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Thursday 14 May 2026 11:05:45 GMT