Accounting explained to kids

Do you have kids?

Here is how you can explain accounting to them!

1. What is accounting?

When a company makes money, it has to keep track of where that money came from and where it goes.
This is called accounting.

2. Why do we need it?

The company has to make sure it has enough money to pay for the things it needs, like the things it sells, the people who work there, and the building it works in.

To keep track of this, the company uses three special papers called the balance sheet, the income statement, and the statement of cash flows.

3. What is the Balance Sheet?

The balance sheet shows how much the company has, how much it owes, and how much is left for the people who own the company.

4. What is the Income Statement?

The income statement shows how much money the company made and how much it spent.
If it made more than it spent, it has some extra money called profit.

5. What is the Statement of Cash Flows?

The statement of cash flows shows where the company's money came from and where it went.

6. What is the General Ledger?

When the company buys or sells something, or pays or gets paid, it has to make two marks in its special book called the general ledger.
One mark is on the side of the things the company has or owes, and the other mark is on the side of the money.

7. What are debits and credits?

These marks are called debits and credits, and they help the company make sure it has the right amount of money and things.

8. What is the Chart of Accounts?

The company also has a list of all the things it can put in its special book, and each thing has its own special number.
This is called the chart of accounts.

� Do you have any other great simple explanations or analogies to explain accounting to Kids?

Tip: these explanations also work with adults

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Pojomojo:
These Canadian Universities are cheaper compared to others.

Simon Fraser University
University of Saskatchewan
University of Prince Edward island
Carlton University
Dalhousie University
Memorial University of Newfoundland
University of Manitoba
University of New Brunswick
Vancouver Island University
Cape Breton University
Mount Saint Vincent University
Brandon University
Concordia university of Edmonton
Saint Paul University
University of Lethbridge
Booth University College
Canadian Mennonite University
University of Guelph

Check them out.

Akp2022:
Please can some one add me up to a group where i can get the vital information and resources i need to secure an admission in a good Canadian university? Carlton University to be precise.

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