wiki/2020-11-15-05-10-51.org
Gabriel Arazas aea7015cd5 Update the files for convention
Apparently, the convention (at least starting from 2018) is to make the
keywords and block names to be in lowercase as stated from one of the
following discussions at
https://orgmode.org/list/87tuuw3n15.fsf@nicolasgoaziou.fr/.

The files was updated with a one liner of shell. However, this is Emacs
and org-mode does have an API to let you do stuff in your config and
interact with the documents internally so it is not an elegant solution
in any way.
2021-04-02 00:08:15 +08:00

33 lines
1.5 KiB
Org Mode

#+title: Accounting basics
#+author: "Gabriel Arazas"
#+email: "%![Error: (void-function user-mail-address)]"
#+date: "2020-11-15 05:10:51 +08:00"
#+date_modified: "2020-11-15 05:11:23 +08:00"
#+language: en
#+options: toc:t
#+property: header-args :exports both
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*.