mirror of
https://github.com/foo-dogsquared/wiki.git
synced 2025-01-31 04:58:21 +00:00
32 lines
1.4 KiB
Org Mode
32 lines
1.4 KiB
Org Mode
:PROPERTIES:
|
|
:ID: 41e9303c-0560-4fc9-a377-b0d78a1f368c
|
|
:END:
|
|
#+title: Accounting basics
|
|
#+date: "2020-11-15 05:10:51 +08:00"
|
|
#+date_modified: "2021-05-04 20:51:33 +08:00"
|
|
#+language: en
|
|
|
|
|
|
Accounting is knowing how much we have.
|
|
Bookkeeping is the practice of tracking and classifying various financial moves.
|
|
|
|
Bookkeeping can make financial management less stressful (and some might say, enjoyable).
|
|
You can easily know what you have: disposable income, loans, credits, etc.
|
|
On the other hand, it is also legally required for business to keep track of it.
|
|
|
|
In accounting, the basic unit of operations are *transactions*.
|
|
Transactions are seen everywhere — you've done a transaction when you've bought your laptop, ordered some food, delivered a package, etc.
|
|
|
|
To make a transaction, an *account* is used as a marker or label for the two sides.
|
|
For example, a transaction for buying a laptop with cash is made of two accounts for the cash and the laptop.
|
|
|
|
In personal financing, there are said five common accounts:
|
|
|
|
- Assets which are composed of your bank account, wallet, real estate, and investments.
|
|
- Liabilities which is something you owe (e.g., mortgages, loans).
|
|
- Income, another term for revenue, is your paychecks, received gifts, and interests.
|
|
- Expenses including groceries and bills, given gifts, and donations.
|
|
- Equity is everything else.
|
|
|
|
Each transaction is made up of two components usually referred as *debit* and *credits*.
|