| Accounting explained in simplest terms! | | | | guy a hundred dollars. After you have paid the |
| What is accounting? If you are confused and don't | | | | amount, he should give you a receipt for it. We |
| know what exactly accounting is all about, then | | | | hardly keep that bill as we are not really |
| the simplest definition of it can be told as the | | | | interested in the bill but the phone. But for the |
| detailed recording of all the money spent and | | | | store guy, he has to maintain a business and so |
| earned or just any transactions as such. This is | | | | the transaction has to be recorded. The store |
| mostly about business transactions and not about | | | | guy should have the $100 amount recorded in the |
| the expenses that one spends for personal | | | | sales list of that day and by the end of that day |
| reasons. | | | | he will know what his total sales are. He can count |
| Letâs consider a small example which can | | | | the total amount in the cash register and remove |
| help you understand the same. You have just | | | | the float amount from it and he gets the total |
| brought a cell phone for $100 by paying the store | | | | sales of the day. |