What you'll learn
What accounting is for and who uses it.
Key ideas
- Accounting records financial transactions; bookkeeping is the day-to-day recording.
- Debtors (receivables) owe the business; creditors (payables) are owed by it.
- Assets, liabilities, capital and revenue; users include owners, lenders and tax authorities.
Exam tips
- Define key terms precisely.
- Identify who uses accounts and why.
Common mistakes
- Confusing debtors and creditors.
- Mixing up assets and liabilities.