What are some common accounting terms I should know?

What are some common accounting terms I should know?

Some common accounting terms include assets, liabilities, equity, revenue, and expenses. Would you like definitions for any of these?

Yes, can you explain what assets are?

Assets are resources owned by a business that have economic value, such as cash, inventory, and property.

What about liabilities?

Liabilities are obligations that a company owes to outside parties, like loans, accounts payable, and mortgages.

Can you tell me about equity?

Equity represents the ownership value in a company, calculated as assets minus liabilities. It reflects the shareholders' stake.