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
For the eight accounting concepts listed above:
- Search the internet for some definitions of each concept, and select the one you find the most helpful.
- 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
