online best resource of information: FINANCIAL ACCOUNTING BASICS

INTRODUCTION

Some of the basic accounting terms that you will learn include revenues, expenses, assets, liabilities, income statement, balance sheet, and statement of cash flows. You will become familiar with accounting debits and credits as we show you how to record transactions. You will also see why two basic accounting principles, the revenue recognition principle and the matching principle, assure that a company's income statement reports a company's profitability.

In this explanation of accounting basics, will often omit some accounting details and complexities in order to present clear and concise explanations. This means that you should always seek professional advice for your specific circumstances.

Tom has also met with an attorney to discuss the form of business he should use. Given his specific situation, they concluded that a corporation will be best. tom decides that the name for his corporation will be Direct Delivery, Inc. The attorney also advises tom on the various permits and government identification numbers that will be needed for the new corporation. Tom is a hard worker and a smart man, but admits he is not comfortable with matters of accounting. He assumes he will use some accounting software, but wants to meet with a professional accountant before making his selection. He asks his banker to recommend a professional accountant who is also skilled in explaining accounting to someone without an accounting background.
Tom wants to understand the financial statements and wants to keep on top of his new business. His banker recommends kyte, an accountant who has helped many of the bank's small business customers.
At his first meeting with Kyte, Tom asks her for an overview of accounting, financial statements, and the need for accounting software. Based on Tom's business plan, Kyte sees that there will likely be thousands of transactions each year. She states that accounting software will allow for the electronic recording, storing, and retrieval of those many transactions. Accounting software will permit Joe to generate the financial statements and other reports that he will need for running his business.

Tom seems puzzled by the term transaction, so Kyte gives him five examples of transactions that Direct Delivery, Inc. will need to record:

Tom will no doubt start his business by putting some of his own personal money into it. In effect, he is buying shares of Direct Delivery's common stock.
Direct Delivery will need to buy a sturdy, dependable delivery vehicle.
The business will begin earning fees and billing clients for delivering their parcels