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Before you can read and interpret financial statements, you need to be familiar with key accounting concepts. These include:

  • Income
  • Expenses
  • Revenue
  • Assets
  • Fixed asset
  • Current asset
  • Liability
  • Current liability


activity

Definition search

For the eight accounting concepts listed above:

  1. Search the internet for some definitions of each concept, and select the one you find the most helpful.
  2. Think of an example of each concept, ideally from your own business idea.

In your learning journal, create a table or list of the eight concepts, with your preferred definition of each one (with a link to where you found it) and your example.
Remember to tag your post using the course code: BMAN111