This is the fundamental accounting equation, also called the balance sheet equation, represents the relationship between the assets, liabilities, and owner's equity of a person or business.

Drawing in accounts is the record kept by a business owner or accountant that shows how much money has been withdrawn by business owners.

Improper Utilization of resources and over investment in assets indicate a Low Return on Investment.

Purchases are debited when an organisation purchases goods on credit.

Future economic benefits are the most important characteristic that all assets of a business have.

Assets - Liabilities = Capital is correct.

Income is the revenue a business earns by selling its goods or by providing services.

Nominal accounts are used to collect accounting transaction information for revenue, expense, gain, and loss transactions, all of which appear in the income statement.

Drawings Account is debited when cash is withdrawn for personal use.

General Journal is the first place where a transaction is entered into the books.

The purpose of financial accounting is to provide financial information to shareholders.

A company is a legal entity formed by a group of individuals to engage in and operate a business, commercial or industrial enterprise. A company may be organized in various ways for tax and financial liability purposes depending on the corporate law of its jurisdiction.

Liabilities are defined as a company's legal financial debts or obligations that arise during the course of business operations.

Journal entries are typically entered in chronological order.

Two accounts are affected whenever a transaction takes place in a business organization.

Revenue, Owner Investments and retained earnings increase the equity of a company.

Net loss occurs when Expenses are greater than income. A net loss, sometimes referred to as a net operating loss (NOL), occurs when expenses exceed the income or total revenue produced for a given period of time.

Owner's claim on total assets is called equity.

An overdraft facility linked to your everyday transaction account is an unsecured line of credit designed to cover short-term cash flow shortfalls.

Balance Sheets are prepared yearly as it displays the liabilities and assets of a company.