Define the following

Accounting -  the system of recording and summarizing business and financial transactions
and analyzing, verifying, and reporting the results also : the principles and procedures of this
system studied accounting as a freshman 
Bookkeeping - the activity or occupation of keeping records of the financial affairs of a
business
double entry bookkeeping - Double-entry bookkeeping is an accounting method where each
transaction is recorded in 2 or more accounts using debits and credits. A debit is made in at
least one account and a credit is made in at least one other account. The total debits and
credits must balance (equal each other).
public accounting - Public accounting is the type of accounting where an accountant works
acts as an independent third party with a variety of client companies to examine the financial
statements that a company is required to disclose to the public.
private accounting - Private accounting refers to the business practices of an accountant
employed by a single company. These types of accountants analyze and prepare financial
reports internally. Typically, a private accountant is also responsible for accounts payable and
sending invoices to clients. Sometimes when a company is being audited, a public accounting
firm will review the work of the private accounting department. The main objective for private
accounting includes setting up internal systems to record business transactions, which will
help inform a company’s financial statements.
Auditing - Auditing is defined as the on-site verification activity, such as inspection or
examination, of a process or quality system, to ensure compliance to requirements. An audit
can apply to an entire organization or might be specific to a function, process, or production
step.
Taxation - imposition of compulsory levies on individuals or entities by governments. Taxes
are levied in almost every country of the world, primarily to raise revenue for government
expenditures, although they serve other purposes as well.
managerial accounting - Managerial accounting is the practice of identifying, measuring,
analyzing, interpreting, and communicating financial information to managers for the pursuit
of an organization's goals.
single proprietorship - an unincorporated business with only one owner who pays personal
income tax on profits earned. Sole proprietorships are easy to establish and dismantle due to
a lack of government involvement, making them popular with small business owners and
contractors.
Partnership - a formal arrangement by two or more parties to manage and operate a
business and share its profits.
Corporation- A corporation is a legal entity created by individuals, stockholders, or
shareholders, with the purpose of operating for profit.
service company -  A service company provides a service to its customers, not a product; by
providing services, a service company generates money.
merchandising company - A merchandising company, both wholesale and retail, sells
tangible goods to its consumer. These companies incur costs, such as labor and materials, to
present and ultimately sell products. Service companies do not sell tangible goods to produce
income.
manufacturing company - A manufacturing company is a company that operates by using a
machine, equipment, and also certain workers, usually such as basic and chemical industries,
various industries and various consumer goods.
business entity concept - a principle of accounting that implies business owners should
keep personal and business records separate. It can assist in maintaining accurate accounting
records and ensuring easier tax filing. This concept allows individuals, whether inside the
company or not, to analyze the financial performance accurately.
going concern - the business entity will continue its operations in the future and will not
liquidate or be forced to discontinue operations due to any reason. A company is a going
concern if no evidence is available to believe that it will or will have to cease its operations in
foreseeable future.
time period assumption - The time period assumption allows a company to report financial
activity for a period of time.
unit of measurement assumption - states that every worth transaction recording must be
recorded and expressed in monetary terms. The money measurement assumption enhances
the understanding of a business concern’s financial state of affairs
accrual basis- Accrual basis is a method of recording accounting transactions for revenue
when earned and expenses when incurred.
matching principle - Matching principle is the accounting principle that requires that the
expenses incurred during a period be recorded in the same period in which the related
revenues are earned. This principle recognizes that businesses must incur expenses to earn
revenues. The principle is at the core of the accrual basis of accounting and adjusting entries.
Financial statements - Financial statements are a collection of summary-level reports about
an organization's financial results, financial position, and cash flows.
statement of comprehensive income - The statement of comprehensive income contains
those revenue and expense items that have not yet been realized. It accompanies an
organization’s income statement, and is intended to present a more complete picture of
the financial results of a business. It is typically presented after the income statement
within the financial statements package, and sometimes on the same page as the income
statement.
statement of financial position - The purpose of the statement of financial position is to
present true information about the company’s assets, liabilities, and equity. 
statement of changes in owner's equity - A statement of owner’s equity is a
financial statement that portrays the changes in a business’s net worth over one financial
period.
statement of cash flows - A cash flow statement is a valuable measure of strength,
profitability, and the long-term future outlook of a company.
notes to financial statements - The notes to the financial statements are a required, integral
part of a company's external financial statements.
Relevance - Relevance is the concept that the information generated by an accounting
system should impact the decision-making of someone perusing the information.
Reliability -  reliability refers to whether financial information can be verified and used
consistently by investors and creditors with the same results. Basically, reliability refers to the
trustworthiness of the financial statements.
Understandability - that the information provided in the financial statements must be easily
understandable by the end users of those financial statements. Any company primarily runs
on the funds of shareholders and directors are the people who manage those funds with the
intention to generate profits.
Comparability - the financial information provided in statements being comparable across
different time periods.
Assets - Current Assets are the assets that a firm can liquidate within twelve months. Non-
Current Assets are the long-term investments of a business that they cannot liquidate within a
year.
Liabilities - Current Liabilities are the amount due to the creditors of a business that has to be
paid back within twelve months. Non-Current Liabilities are the long-term obligations of a
company that are not due for payment before a year.
Capital -  Capital is a critical component of any business to run its daily operations and help its
future growth. The capital for a business comes either from its owners or from outsiders
(shares, debentures or bonds).
Cash - Cash is recorded as a current asset on the balance sheet. Even though cash can be
saved for future periods, it is still considered a current asset because it can because it can be
used in one period.
accounts receivable - Accounts receivable is any amount of money your customers owe you
for goods or services they purchased from you in the past. 
notes receivable - a written promise to receive a specific amount of cash from another party
on one or more future dates.
merchandise inventory - the finished goods that a distributor, wholesaler, or retailer
acquires from the supplier, who may be a manufacturer.
Supplies - incidental items that are expected to be consumed in the near future. The normal
accounting for supplies is to charge them to expense when they are purchased.
prepaid expenses - Prepaid expenses in accounting begins with the journal entry that creates
the prepaid asset. 
Equipment - Equipment is a type of fixed asset used by a company in its business operations
and reported on the long-term assets section of the balance sheet under the line item
property, plant, and equipment.
furnitures & Fixtures - are fixed assets used by the company to generate revenues.
intangible assets -  Intangible Fixed Assets are the long-term investments made by a
company that doesn’t have a physical existence.
Franchise - A franchise is the license to make or sell a product under certain conditions
granted by the owner of these rights.
Copyright- A copyright is the legal privilege given to the owner to publish and sell musical,
literary, and artistic work during the creator’s life plus 70 years.
Patents - patent is a legal right to an invention given to a person or entity without interference
from others who wish to replicate, use, or sell it. Patents are granted by governing authorities
and have a time limit, usually 20 years.
Trademarks - a sign that you can use to distinguish your business’ goods or services from
those of other traders.
computer software - written programs or procedures or rules and associated
documentation pertaining to the operation of a computer system and that are stored in
read/write memory
accounts payable - any sum of money owed by a business to its suppliers shown as a liability
on a company's balance sheet.
notes payable - written agreements (promissory notes) in which one party agrees to pay the
other party a certain amount of cash.
mortgage payable - the liability of a property owner to pay a loan that is secured by property
salaries payable - the amount of liability or payment of the company towards its employees
against the services provided by them but not yet paid at the end of the month, year, or for a
specific period of time.
interest payable - an entity’s debt or lease related interest expense which has not been paid
to the lender or lessor as on balance sheet date.
taxes payable - one or more liability accounts that contain the current balance of taxes owed
to government entities.
utilities payable - the amount owed to suppliers for electricity, gas, Internet connections,
telephones, and water.
unearned revenue - unearned revenue is prepaid revenue. This is money paid to a business
in advance, before it actually provides goods or services to a client. Unearned revenue is a
liability, or money a company owes.
Sales - Sales is an economic activity where a business exchanges goods or services with
another entity for money. It is the primary source of revenue for any organisation.
service revenue - income a company generates from providing a service.
professional fees - a revenue account and appears in the first section of an income
statement.
rent income - revenue earned from leasing out properties, such as commercial spaces, to
third parties.
interest income - the revenue earned by a lender for use of his funds or an investor on their
investment over a period of time.
fees earned - represents the amount of revenue a company generated by providing services
during an accounting period.
subscription revenue - the business model that company charges the recurring fee base on a
monthly, quarterly, or annual basis.
commissions earned - an amount earned in exchange for transacting a sale of a product or
providing a service.
Expenses - refer to costs incurred in conducting business. Technically, expenses are
"decreases in economic benefits during the accounting period in the form of decreases in
assets or increases in liabilities that result in decreases in equity, other than those relating to
distributions to equity participants".
salaries expense - compensation to employees for their services to the company
taxes & licenses - business taxes, registration, and licensing fees paid to the government
rent expense - cost paid or to be paid to a lessor for the right to use a commercial property
such as an office space, a storeroom, a building, etc.
advertising expense - costs of promoting the business such as those incurred in newspaper
publications, television and radio broadcasts, billboards, flyers, etc.
miscellaneous expense - small transactions that do not fit within the ledgers’ specified
accounts.
Drawing - Drawings refer to the withdrawals made by the owners of a business for personal
use. It gets deducted from the Owner’s Capital in the Liabilities side of a Balance Sheet.