bisnisrakyat.id - Accounting is a very important science in financial management. In a company, accounting is used to obtain financial information that can be used in decision making. Not only companies, accounting is also useful for people who want to start and are running their own businesses. Information such as how much profit or loss, how much assets are owned, how much burden is incurred can be a reference for companies in maximizing their business profits.

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Accounting is the process of recording, grouping, processing and presenting transaction data to see financial performance in a certain period. The basis of accounting is the basic thing related to the application of this science which usually consists of equations, journaling, making balance sheets, to presenting financial statements. The basic component of accounting is an equation that shows the amount of assets (assets) of a company which is always the same as the sum of the company's debts and capital (liabilities). This basic component can provide a big picture of the company's assets, debts, and capital during a certain period.

To make it easier to understand, the basic components of accounting are usually described as the formula assets or assets = debt + capital or liabilities. From the formula above, it can be seen that the company's assets must be the same as the sum of capital and debt. If there is no similarity, it means that there is an incorrect input or miscalculation between the accounts. This formula can also be used as a reference for checking the amount of incoming and outgoing balances and correcting the accuracy of the balance.

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Assets are resources owned by a company to carry out business activities in a certain period. Assets can also be called "property" or "wealth" of the company. Examples include buildings, vehicles, copyrights, cash, receivables and so on. Assets are divided into 3 forms, namely fixed assets such as (buildings, vehicles and production machines), current assets such as (prepaid expenses, receivables, and cash), and intangible assets such as (goodwill, patents, and copyrights).

Liabilities are the company's responsibility to certain parties, whether they must be paid immediately or not. Debt is divided into 2, namely short-term debt and long-term debt. Short-term debt is an obligation that must be paid in 1 year or less, such as tax obligations, employee salaries and trade debts. Long-term debt is an obligation that has a repayment period of more than 1 year, such as bonds.

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Equity or capital is the owner's right to the company's assets after deducting liabilities. Equity is also defined as the capital or wealth of a business entity, calculated by the amount of assets minus liabilities. Equity is divided into 2, namely shareholders' capital and company owner's capital. Shareholders' equity is the amount of asset value given to the shareholders of a company, after deducting liabilities. Owner's equity is the amount of ownership of an owner over the related business. Examples of equity are capital, private, common stock and ordinary profit.