Explain the following terms as used in the discipline of Accountingi)      Double Entry system                                                                                     (2 marks)ii)    Assets and Liabilities                                                                                     (3 marks)     iii)  Accruals and Prepayments                                                                           (3 marks)iv)   Profits and Losses

i) Double Entry System: This is a fundamental concept in accounting where every financial transaction has equal and opposite effects in at least two different accounts. It is used to satisfy the equation Assets = Liabilities + Equity. For example, if a business takes a loan, its assets (cash) increase and its liabilities (loan payable) also increase.

ii) Assets and Liabilities: Assets are resources owned by a company that can be converted into cash or used to generate income. They include things like cash, accounts receivable, inventory, property, and equipment. Liabilities, on the other hand, are obligations or debts that a company owes. They include things like loans, accounts payable, mortgages, deferred revenues, and accrued expenses.

iii) Accruals and Prepayments: Accruals are expenses that have been incurred but not yet paid. For example, if a company receives goods or services from a supplier but hasn't received an invoice yet, the company would record an accrual. Prepayments are payments made in advance for goods or services to be received in the future. For example, if a company pays in advance for a year's worth of rent, it would record a prepayment.

iv) Profits and Losses: Profit, also known as net income, is the amount of revenue that remains after all business expenses, costs, and taxes are paid. It's the "bottom line" or "net" income after accounting for all expenses, costs, and taxes. A loss occurs when expenses exceed revenue, costs, and taxes.