Accounting Concepts

Question 1

What is accounting?

Answer 1

Accounting is the art of recording, classifying and summarising transactions in terms of money and interpreting results.

Question 2

What is the purpose of accounting?

Answer 2

To provide an efficient method of recording transactions.

Question 3

What is the accounting equation?

Answer 3

Assets=Owners Equity+Liabilities

Question 4

What are transactions?

Answer 4

Transaction is the term used to refer to the buying and selling of goods and services and the transference of money.