Some common accounting terms include:
- Asset: A resource that a company owns and expects to benefit from in the future.
- Liability: A debt or obligation that a company owes to another party.
- Equity: The net worth of a company, calculated as the difference between its assets and liabilities.
- Revenue: The income that a company generates from its business activities.
Expense: The costs that a company incurs in order to generate revenue. - Profit: The amount of money that a company makes after it has paid all of its expenses.
- Loss: The amount of money that a company loses after it has paid all of its expenses.