A business or organization maintains different types of accounts following the principles of accounting. Such as: Accounts related to income , expenses , assets and liabilities etc. These are called the basic elements of accounting. These basic elements are briefly described below: Income: What is earned by selling goods or services is called income. This achievement is expressed in money. For example: Sweet shopkeeper earned 100 rupees by selling sweets. This is his income of 100 rupees. Expense : The loss of property for the production of goods or services is called cost. For example: Sweet shopkeepers use sugar , lamb , ghee etc. to make sweets. The price of sugar , lamb and ghee will be called the cost of sweet shop. Assets : Valuable items under the organization are called assets , which are used to settle the debts of the organization. Such as: house , car , bank deposit , cash , furniture and inventory etc. Liability : Liability of any organization to any other organization is called liability of that organization. For example: Mitali Traders bought the rest of the 100 Taka products from Senali Traders. Here is a liability of Mitali Traders. This is a short term liability. Liability can also be long term. Such as- capital. Net Profit: If the income is more than the expenditure, net profit is made. Net Loss: If income is less than expenditure, net loss occurs.