Basic in Accounting and finance Review

Debit (French - sales, expenditure) - an entry on the left-hand side of an account in double-entry book-keeping, showing an amount owed by the organization keeping the book. In the case of a bank account, a debit shows an outflow of funds from the account.
Credit (Latin - Creditum - Loan ) - the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.
Loan -  Money lent on condition that it is repaid, either in installments or all at once, on agreed dates and usually that the borrower pays the lender an agreed rate of interest (unless it is an interest-free loan)
Liabilities - The funding of a business debt. The legal obligation to make some payment. This includes payment of compensation to employees injured at work, or to customers injured by defective products such as unsafe cars, or paying other people's debts if one has guaranteed them and they default.

The accounting equation relates assets, liabilities, and owners equity:

Assets = Liabilities + Owner's Equity

Every business has three primary financial tasks that determine the success or failure of the enterprise and by which its managers are judged:

• Making profit - avoiding loss and achieving profit goals by making sales or earning other income and by controlling expenses.
• Cash flow - generating cash from profit and securing cash from other sources and putting the cash inflow to good use.
• Financial health - deciding on the financial structure for the entry and controlling its financial condition and solvency.

Figure of Accounting system