What is an accounting equation?

What is income?

LIABILITIES: Debts, usually money, that the business owes.

NET INCOME/PROFIT/EARNINGS: Money remaining after operating expenses are subtracted from gross profit

ACCOUNTS PAYABLE:All monies owed to a firm by its customers

Accounting - The process of keeping and interpreting financial records.

Accounting system - The methods and procedures used in consistently handling the business's financial information.

Capital Investment Decisions - Decisions that determine which projects a business will invest in, how the investment(s) will be financed, and whether or not to pay dividends to shareholders.

Working Capital Management - Management of a firm’s current balance of assets and liabilities; involves accounts payable and receivable, inventory and cash.

What is finance?

Cash Conversion Cycle of Working Capital Management - Ratio that refers to the number of days between a company’s paying for raw materials and receiving cash from selling the products made from those raw materials.

Return on Capital - A measure of how well a business generates cash flow in relation to the capital it has already invested in itself.

What is equity ?

What is assets?

Many firms have failed, not because of inefficiency of production, inability in marketing or non-availability of funds but due to the absence of competent finance manager.