How to Learn the Accounting Terms
Accounting is the language of business, built on a few core concepts — assets, liabilities, equity, revenue. Learn these and financial statements start to make sense. This deck teaches the fundamental terms and the accounting equation that ties them together.
There are 12 cards in the deck below. You can read through them, practise them right here with the flip-card player, and then save the deck to study properly with spaced repetition — the method that makes them stick for months, not minutes.
Why the basic accounting terms is hard to memorize (and the fix)
The classic confusions are debit vs credit (they are not "minus" and "plus") and revenue vs profit. Learning the definitions and the accounting equation fixes the framework.
The fix is active recall plus spaced repetition. Instead of re-reading the list (which feels productive but barely works), you test yourself — pull each answer out of memory — and you review each card on a schedule that stretches over time. Every time you successfully recall a fact, the memory gets stronger and the next review is pushed further out. That's how you go from "I saw it once" to "I just know it."
The fastest way to learn the basic accounting terms
- Break it into small batches. Learn the accounting equation first (Assets = Liabilities + Equity), then the income terms (revenue, expenses, profit).
- Test, don't re-read. Look at the question, say the answer out loud before flipping the card. The little struggle to recall is what builds the memory — a smooth re-read does almost nothing.
- Review on a schedule. Spaced repetition shows you each card right before you'd forget it. Get one right and it comes back in a few days, then a week, then a month. Miss one and it comes back sooner.
- Keep sessions short and daily. Five to ten minutes a day beats a two-hour cram every time. Consistency is the whole game.
One fact per card. Revenue is total income; profit is what is left after expenses. They are not the same.
The full deck: the Accounting Terms
Here's every card in the set. Practise them above, or save the deck and let spaced repetition schedule your reviews automatically.
| Term | Definition |
|---|---|
| What are assets? | Things a business owns that have value (cash, equipment, inventory) |
| What are liabilities? | What a business owes (debts, loans, bills) |
| What is equity? | The owner's share: assets minus liabilities |
| What is the accounting equation? | Assets = Liabilities + Equity |
| What is revenue? | The total income from sales |
| What are expenses? | The costs of running the business |
| What is profit (net income)? | Revenue minus expenses |
| What is a balance sheet? | A snapshot of assets, liabilities and equity at a point in time |
| What is an income statement? | A report of revenue, expenses and profit over a period |
| What is depreciation? | Spreading the cost of an asset over its useful life |
| What is the difference between revenue and profit? | Revenue is total income; profit is what remains after expenses |
| What is cash flow? | The money moving in and out of a business |
Save this deck and actually remember it
Create a free account, keep this 12-card deck, and we'll schedule every review at the perfect moment. First deck free forever — no credit card.
Study this deck free →FAQ: learning the basic accounting terms
How long does it take to learn the basic accounting terms?
Most people can lock in the basic accounting terms within one to three weeks of short daily sessions. With spaced repetition doing 10–12 cards a day, you'll recognise them within days and recall them reliably within a couple of weeks.
What's the best way to memorize the basic accounting terms?
Active recall plus spaced repetition. Test yourself instead of re-reading, and review on a schedule that spaces the cards out over time. Flashcards are built for exactly this — which is why the deck above is the fastest path.
Is this deck free?
Yes. You can practise all 12 cards on this page for free with no account. Sign up (also free) to save the deck and let spaced repetition schedule your reviews so it sticks long-term.