Year 10 Commerce Accounting

Understanding the basic principles of accounting, including the accounting equation: Assets = Liabilities + Owner's Equity.

Assets: An item a business owns which holds value

Liabilities: A debt a business owes to an outside party, external business

Owner’s Equity: Owners value in the business (Assets - Liabilities)

Current Assets: Assets expected to be used or turned into cash within 12 months

Non-Current Assets: Assets that will provide value to the business for more than 12 months

Current Liabilities: Debts owed within 12 months

Non-Current Liabilities: Debts owed beyond 12 months