• Imagine you took selfies throughout the year, and then, at the end of the year, you had a photo album showcasing your entire journey. Final accounts are kinda like that photo album, but for businesses. Instead of showing fun times at the beach, they show 💰 financial ups and downs over the year.
• Who cares? Well, a lot of people! Like
  • Internal Stakeholders: Think of your family (👨‍👩‍👧) - they include shareholders, managers, and employees.
  • External Stakeholders: The excited kids outside peeking in (👀) - customers, suppliers, government, competitors, financers, and the community.

• Ever count the money you earned from a summer job and then deduct the cash you spent on games and snacks? That's your mini Profit and Loss account! It's basically tracking money coming in (income) vs. money going out (expenditure) over a certain time. Another fancy term for this is an income statement.

Real-world example: If you sold 100 lemonades at $1 each, your income is $100. Subtract the $30 you spent on lemons and sugar, and boom! You have a profit of $70.

It's like taking a quick snapshot 📸 of the company's financial position at a specific moment. It tells

• What a company owns
• (🚗 Assets: things like cash, equipment, inventory).
• What a company owes
• (🔗 Liabilities: loans, bills).
• And how much is the company's actual worth aka equity (think of this as the value after paying off all the owes).