concepts and terminologies

 

-   Revenue is the benefit obtained by an industrial asset delivery of activity from the organization and susceptible to monetary quantification.

-    The statement of changes in equity includes for each component of equity, a reconciliation between the carrying amount at the beginning and the end of the period.

-   The balance sheet reports on company’s financial position at a point in time, assets, liabilities and equity are the elements of the balance sheet.

-   A statement of profit or loss as at the end of the period.

-   The income statement reports on a company’s performance over a period of time (between two balance sheet dates), presenting the income, expenses and the difference between them.

-   Liabilities are present obligation of entity to transfer an economic resource as a result of past events.

-    Assets are present economic resources controlled by the entity   as a result of past events.

-    A statement of cash flows summarizes information concerning the cash inflows (receipts) and out flows (payments) for specific period of time.

-   Financial statement is the final output of the accounting process.