The main reason for having accounting is to be able to maintain up-to-date and valid financial records of all aspects of your business. Without accounting and finance, everyone would be virtually free to buy, sell, and provide customers with the support they need. Accounting prevents companies from lying about profits and losses that could affect investors. Businesses must provide some sort of service, which usually requires a currency change, which must be recorded in great detail. One of the most important concepts in accounting is the equation Assets = Liabilities + Shareholders' Equity. Assets are economic resources owned by the business, such as cash and inventory. Assets can be physical goods such as machines, or intangible elements such as brands or patents. Liabilities are something that a business is accountable for. Stocks are a source of financing from shareholders. Equity is the money that would be left over if a company paid off all of its debts and sold all of its assets. The relationship and the equation create...