Accounting Terms. Accounting Equation – The Accounting Equation is Assets = Liabilities + Equity. Accounts Receivable – Assets of a business and represent money owed to a business by others. Accrual Accounting – Records financial transactions when they occur rather than when cash changes hands.Click to see full answer. Just so, what are the basic financial terms? Here are 10 essential finance terms every entrepreneur needs to know. Assets. First on the list of financial terms, assets are the economic resources a business has. Liabilities. Expenses. Accounts receivable. Cash flow. Cash flow statement. Profit and loss. Income statement. Also, what do you understand by accounting and what are the main terminology comes under accounting process? It is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information. It reveals profit or loss for a given period, and the value and nature of a firm’s assets, liabilities and owners’ equity. Moreover, what are the 5 basic accounting principles? 5 principles of accounting are; Revenue Recognition Principle, Historical Cost Principle, Matching Principle, Full Disclosure Principle, and. Objectivity Principle. What are accounting concepts?Accounting concepts are postulates, assumptions or conditions upon which accounting records and statement are based. The various accounting concepts are as follows: 1. Entity Concept: For accounting purpose the “business” is treated as a separate entity from the proprietor(s).