Question

i dont understand the meaning and how to use the terms like debit and credit, amortization, and why is there the rule Assets = Liabilities + Equity, I'm 12 and trying to learn so I can help with my family business, Please help and explain it I am completely new to this thank you

Answer 1

Have you tried asking a parent/guardian about the terms? if you have but still don't understand I'll do some research and get back to you on the 21st.

Answer 2

thank you so much, my mom usually works late, and cuz of that i don't get to see her much unless on weekends, so id rather not ask her about this since it would just bother her, I'm doing my own research as well, i would just like to compare my understanding with what others see it as

Answer 3

I suggest searching Accounting for Beginners & Dummies: Fundamental Principles of Financial Management - Audiobook by Giovanni Rigters. It should be available on youtube. It basically explains you the basic terminologies such as the terms you mentioned. If you do not like audiobooks, just try searching for "accounting 101" topics on youtube so it can also help you visualize some concepts.

Glad that you are interested on this topic, it's very rare for young people getting into this.

Answer 4

I would consider using online research, for example you can search on how to better understand the definitions, or learn them in general.

For example, Liabilities, There are sites everywhere for each of these explanations along with definitions and how to compare them to other words that could be correlated to thy word.

https://www.investopedia.com/terms/l/liability.asp

This talks about the types of liabilities, definitions, examples, etc. You should try to aim to look further into the internet or explore other possibilities to further enhance your knowledge, As well as when you get older they teach a lot of this stuff in finance classes, such as financial literacy. Which you either take Junior or Senior year.