
Concept Introduction
Accounting Process: The Accounting process is a series of activities or processes that start with a financial transaction and end with the closing of books. It is also called accounting cycle because it is repeated in each year.
Assets: Assets are tangible and intangible resources owned and controlled by the company as a result of past transactions, from which economic benefits are expected to the company. It includes land, machines, cash etc.
Liability: Liabilities are obligations or payable by the company.
Equity: Equity or capital is the investment of the owner of the company and it is a portion of the total assets that the owner of the business owns.
Revenue: Revenue or income is the amount that the company receives from the sales of products or services.
Expenses: Expenses are the amount spent by the company to generate the revenue.
To Identify: The entries that Groro Co. makes to record the given transactions.

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Chapter 2 Solutions
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