The day-to-day running costs of a business, EXPENSE, The amount the business receives for being in business, INCOME, The business owns this, has use of it, and uses it to make profit, ASSET, Amounts owed for sources of funds outside the business, LIABILITIES, The owners share of the business, EQUITY, The money, assets invested in the business by the owner, CAPITAL, Assets = Liabilities + Equity, ACCOUNTING EQUATION, Income - Expenses, PROFIT, Owner takes cash or inventory for own use, DRAWINGS, In the statement of financial position - Net Assets should be the same amount as what, CLOSING CAPITAL.

DEFINITIONS ACCOUNTING ELEMENTS

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