wiki/_next/data/Ie9t5zutrXP6Of75Cb5xF/2020-11-15-05-10-51.json

{"pageProps":{"metadata":{"date":"\"2020-11-15 05:10:51 +08:00\"","date_modified":"\"2021-05-04 20:51:33 +08:00\"","language":"en","source":""},"title":"Accounting basics","hast":{"type":"root","children":[{"type":"element","tagName":"nav","properties":{"className":"toc"},"children":[{"type":"element","tagName":"ol","properties":{"className":"toc-level toc-level-1"},"children":[]}]},{"type":"element","tagName":"p","properties":{},"children":[{"type":"text","value":"Accounting is knowing how much we have.\nBookkeeping is the practice of tracking and classifying various financial moves.\n"}]},{"type":"element","tagName":"p","properties":{},"children":[{"type":"text","value":"Bookkeeping can make financial management less stressful (and some might say, enjoyable).\nYou can easily know what you have: disposable income, loans, credits, etc.\nOn the other hand, it is also legally required for business to keep track of it.\n"}]},{"type":"element","tagName":"p","properties":{},"children":[{"type":"text","value":"In accounting, the basic unit of operations are "},{"type":"element","tagName":"strong","properties":{},"children":[{"type":"text","value":"transactions"}]},{"type":"text","value":".\nTransactions are seen everywhere — you've done a transaction when you've bought your laptop, ordered some food, delivered a package, etc.\n"}]},{"type":"element","tagName":"p","properties":{},"children":[{"type":"text","value":"To make a transaction, an "},{"type":"element","tagName":"strong","properties":{},"children":[{"type":"text","value":"account"}]},{"type":"text","value":" is used as a marker or label for the two sides.\nFor example, a transaction for buying a laptop with cash is made of two accounts for the cash and the laptop.\n"}]},{"type":"element","tagName":"p","properties":{},"children":[{"type":"text","value":"In personal financing, there are said five common accounts:\n"}]},{"type":"element","tagName":"ul","properties":{},"children":[{"type":"element","tagName":"li","properties":{},"children":[{"type":"element","tagName":"p","properties":{},"children":[{"type":"text","value":"Assets which are composed of your bank account, wallet, real estate, and investments.\n"}]}]},{"type":"element","tagName":"li","properties":{},"children":[{"type":"element","tagName":"p","properties":{},"children":[{"type":"text","value":"Liabilities which is something you owe (e.g., mortgages, loans).\n"}]}]},{"type":"element","tagName":"li","properties":{},"children":[{"type":"element","tagName":"p","properties":{},"children":[{"type":"text","value":"Income, another term for revenue, is your paychecks, received gifts, and interests.\n"}]}]},{"type":"element","tagName":"li","properties":{},"children":[{"type":"element","tagName":"p","properties":{},"children":[{"type":"text","value":"Expenses including groceries and bills, given gifts, and donations.\n"}]}]},{"type":"element","tagName":"li","properties":{},"children":[{"type":"element","tagName":"p","properties":{},"children":[{"type":"text","value":"Equity is everything else.\n"}]}]}]},{"type":"element","tagName":"p","properties":{},"children":[{"type":"text","value":"Each transaction is made up of two components usually referred as "},{"type":"element","tagName":"strong","properties":{},"children":[{"type":"text","value":"debit"}]},{"type":"text","value":" and "},{"type":"element","tagName":"strong","properties":{},"children":[{"type":"text","value":"credits"}]},{"type":"text","value":".\n"}]}]},"backlinks":[]},"__N_SSG":true}