ACCOUNTANCY BASICS
ASSET
An asset is a resource controlled (owned) by an entity as a result of
past events and from which future economic benefit are expected to
flow into entity.
EXPENSE
An expense is the cost of operations that a company incurs to
generate revenue and from which no further benefit is expected.
LIABILITY
A present obligation of the entity to transfer an economic resource as
a result of past event.
It is a claim of outsiders on total assets of the company.
EQUITY
It is the residual interest in the total assets of the entity after
deducting all its liabilities.
It is the claim of owners in the total assets.
REVENUE
It is the gross inflow of cash, receivables or other consideration
arising in the course of ordinary activities of the business such as sale
of goods, rendering of services etc.