Elements of Financial Statements

Elements of Financial statements

Introduction

Accounting is the methodical documenting and classification of an organization's financial records. These financial records fall into several categories: resources (assets), obligations (liabilities) or person's value (owner's equity), revenue, expenses, profit and loss. Resource accounting is the accounting of the asset records such as: money, account receivables, stock, land, devices and intangible resources. On the other hand, it is the use of resources due to which an organization earns revenue. Simultaneously, the expenditures majorly incurred in a business are the cost for the maintenance of those assets, and ultimately effective source and use management will ...