1. Why is accounting called the language of business?

1.Why is accounting called the language of business?
Accounting for businesses acts as something of a common language, allowing outsiders to better comprehend what's going on behind the scenes. Both company owners and their financial advisers may benefit from this when it comes to making effective choices for their companies.
2.Give an example of a financial resource, a physical resource, and a labor resource.
Having knowledge of accounting would allow you to respond intelligently to the following inquiry: Should I put my money into IBM or General Motors?
3.How do financial and managerial accounting differ?
The difference between financial and managerial accounting is not big. The requirements of third-party users are prioritized in financial accounting. The requirements of internal users are the primary emphasis of managerial accounting.
4. Distinguish between elements of financial statements and accounts.
Elements are the categories into which the items reported in the financial statements fall. There are 10 elements, 1. Assets
2. Liabilities
3. Equity (Stockholders' Equity)
4. Investments by Owners (Contributed Capital)
5. Revenue
6. Expenses
7. Distributions (Dividends)
8. Net Income
9. Gains
10. Losses
Accounts include cash, land, and common stock.
5. Describe the differences between creditors and investors.
Creditors are investors who lend money to a business, while shareholders are investors who own the firm's shares.
6. Name the accounting term used to describe a business’s obligations to creditors.
Payables, also known as accounts payable (AP), are short-term liabilities owing to a company's creditors or suppliers that have not yet been paid. On the balance sheet, payables are classified as a current obligation.
7. What is the accounting equation? Describe each of its three components.
The accounting equation consists of three parts: assets, liabilities, and shareholders' equity. Each of these components is a portion of the equation. The calculation is straightforward: the entire assets of a corporation are equal to its total liabilities plus the equity that is held by its shareholder
8. What does a double-entry bookkeeping system mean?
According to the principle of double entry, which is a basic notion that underpins contemporary bookkeeping and accounting, each and every monetary transaction has consequences that are equal and opposite in at least two independent accounts. It is used in order to solve the following accounting equation:
Assets= liabilities + equity
​In a general ledger or T-account that uses a double-entry system, credits and debits are balanced against one another.
9. Discuss the two views of the right side and the left side of the accounting equation.
According to the accounting equation, the total assets of a corporation are equal to the sum of the firm's liabilities and the equity held by its shareholders. The direct link that exists between a company's assets, liabilities and equity is regarded as the system's basis when it comes to double-entry accounting. The accounting equation guarantees that the balance sheet will continue to be in a neutral state. That is to say, for every entry that is made on the debit side, there is an entry (or coverage) that corresponds to it on the credit side.