Welcome to our Post It Learning Gallery
Our Post It Learning Gallery [PILG], has been designed to be educational, fun and engaging for readers like you. It also serves to educate new business owners and students the language of accounting in the business world and while providing this resource, our objective is to enrich peoples lives with this shared knowledge, so in turn it can be put into practice.
This is a new tool for us and so we value your queries, comments and suggestions. Click here ⮞ to tell us how we are doing.
The revenue of your company is the total amount of proceeds generated for providing goods and services to your customers.
This is typically the total amount of the invoices that you generated for your customers.
Its the costs you incur to run your business, whether they are fixed costs (independent of how much business activity you have, like rent) or variable costs (directly related to how much business activity you have, like shipping).
An asset is anything you own in your business. They are the things in your office like laptops, desktops, televisions, projectors, your vehicles, your receivables owed by customers and your cash on hand. Everything you own is considered an asset of the business.
Your liabilities are the things you owe, like sales taxes received from sales but not yet paid to the state, or loans payable to your bank.
Liabilities represent claims against your assets.
The difference between the value of your assets and the total of your liabilities is the value of your company.
As the Accounting Equation states: Assets - Liabilities = Owner’s Equity.
Cost of Sales (COS) or Cost of Goods Sold (COGS) refers to the total value of the goods and services that were sold to your customers. Typically, this refers to items-based businesses that buy inventory for resale, or a manufacturer who builds items for resale.
What is Accounts
Money or other obligations owed to creditors for services and materials, a Liability on the Balance Sheet.
What is Accounts Receivable?
Money or other obligations due for services rendered or items sold on
terms, an Asset on the Balance Sheet.
Both A/P and A/R accounts include aging, which is simply a way to manage monies coming in or monies going out.
Just So You Would Know
We are not stopping here. We’re constantly thinking about ways to enrich the BondEsq Services experience to help people like you be more engaging and productive in your personal and professional endeavour. Our continuous efforts, is to want people to think of the BondEsq Services as a tool they would turn to for services and resources and as such we value your input to make services available to you and resources a valuable information tool.