by Ekrem Duman | Jun 10, 2026 | Accounting, Accounting Fundamentals
⚡ TL;DRAccounting principles and standards — such as GAAP (in the US) and IFRS (internationally) — are the agreed rules and concepts that govern how financial information is recorded and reported. They ensure financial statements are reliable, consistent, and...
by Ekrem Duman | Jun 10, 2026 | Accounting, Accounting Fundamentals
⚡ TL;DRCash accounting records revenue and expenses when cash actually changes hands; accrual accounting records them when they are earned or incurred, regardless of when cash moves. Accrual accounting gives a more accurate picture of financial performance and is...
by Ekrem Duman | Jun 10, 2026 | Accounting, Accounting Fundamentals
⚡ TL;DRDebits and credits are the two sides of every accounting entry in double-entry bookkeeping. They are not “good” or “bad” — a debit is simply an entry on the left, a credit on the right, and what each does depends on the account type....
by Ekrem Duman | Jun 10, 2026 | Accounting, Accounting Fundamentals
⚡ TL;DRThe accounting equation — Assets = Liabilities + Equity — is the foundation of all accounting. It states that everything a business owns (assets) is financed either by what it owes (liabilities) or by owners’ investment and retained earnings (equity). The...
by Ekrem Duman | Jun 10, 2026 | Accounting, Accounting Fundamentals
⚡ TL;DRAccounting is the process of recording, measuring, summarizing, and reporting a business’s financial transactions and position — often called the language of business. Its purpose is to provide useful financial information for decision-making by owners,...
