Accounting Basics Assignment Help
Accounting is a very important tool for recording,summarizing,analyzing and finally reporting of the transactions. Accounting is defined as a process of recording the financial transaction of business. Accounting is one of the most important and primary requirement of any business. If there is a business, than Accounting is compulsory for ascertaining the profit from the business.
To run any business, Accounting is highly needed and therefore Accounting Basics is important for everyone to understand.We, at Assignment Consultancy have experts who have expertise knowledge on Accounting Basics and can help you solve any kind of Accounting Basics Assignment.
At Assignment Consultancy, experts not only solve Accounting Basics Assignment help but also helps students to learn about the concepts so that they can apply it in real time environment.
Students from all over the world have come to AssignmentConsultancy.com for initial help in Accounting Basics Assignment help and they have one common issue that understanding Accounting Basics is very tough and they always misunderstand one terms of Accounting Basics with the other term .
To Solve these common error, Experts at AssignmentConsultancy.com has tried their best to define and explain some of Accounting Basics term so that they can clear all their doubts easily. Our experts have defined each terms of Accounting in a very easy and understandable language so that student would never be confuse in understanding the term.
Some Accounting Basics Terms are as follows:
1. Assets:Asset is any tangible or intangible item which can generate revenue to an organization or may lead to savings of cost.
For Example:if) A Copyright which will help an organization to earn profit in future can be called as an Asset as it will generate revenue in future.
ii) A Dustbin which will not generate revenue but it will lead to savings of Cost will be an asset.
iii) A machinery which will lead to generation of revenue through production of Goods will be an Asset.
Assets are of two types:
i) Current Asset
ii) Fixed Asset includes Tangible and Non Tangible Asset
In a Very easy language, Asset is a tangible or intangible item which helps in earning revenue or saving cost.
2. Liabilities:Liability is a debt which a company needs to pay to outsider. Debt can be of any form i.e. Current or Long term debt. Outsider can be anyone such as Creditor, Government (If any taxes are outstanding),long term fund provider such as debenture holders, Bond Holders etc.
3. Common Stock:Common Stockholders are the real owners of the business. When Management issues Stock to the investors and they purchase it from the Management, they become owners of an organization. They are the ones who are the real owners of the business.
4. Retained Earnings:Retained Earnings is the earning that has been saved after paying all expenses to an organization. To explain in a very simple language, it is a Net Income of an organization. For Example: A company had a Net income of 100000$ in 2011 and in the current year 2012, it had a Net Income of $200000,so income of 2011 i.e. $100000 is a retained earnings and 200000$ would be current year income, In the Year 2013, Retained earnings would be $300000 which includes $100000 of 2011 and $200000 of 2012.
5. Shareholders’ Equity: Common Stock and Retained Earnings are collectively known as Shareholders Equity.
By Understanding the 5 Basics terms, we can define an AccountingEquation.
Accounting Basics Equation:
- Current Asset + Fixed Asset = Current Liability + Long term Liability + Retained Earnings + Common Stock
- Assets(Current Asset + Fixed Asset) = Liability (Current Liability + Long term Liability) + Shareholders Equity (Retained Earnings + Common Stock )
- So, Assets = Liabilities + Shareholders Equity
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