Today most of the modern developed economies are built on the free market principles first introduced by the famous economist Adam Smith. We all have many times heard about the supply-demand model which is always represented by the intersecting curves on the graph. I’ll try to illustrate the main concept of the free market in a bit simpler way not using those graphs.

This article is for beginners of accounting profession who just started their long way and already struggling to understand the basics. The starting point of almost any accounting course is an explanation of the double-entry bookkeeping system which then stands as a core of any further studies. If you did not clearly understand how it works in the beginning the effect of further education will be zero.

I’ll try to illustrate the basics of accounting in the simplest possible way, avoiding in the beginning the use of such confusing terms like assets, liabilities, debits and credits, etc.