Positive accounting

Hello there! Today, we're going to talk about something called "positive accounting" in a way that you can understand, just like you're 5 years old.

So, do you remember when you learned how to count numbers? Positive accounting is a little bit like that. It's a way for businesses to keep track of their money and make sure they're spending and earning enough to be successful.

But positive accounting is more than just counting. It's a way of looking at the ways businesses make money and staying positive about their future success.

For example, let's pretend you had a toy shop. You would want to use positive accounting to keep track of the money you earn from selling toys and the money you spend on buying toys from suppliers. This would help you know if your shop is making enough money to be successful.

But positive accounting doesn't just focus on the money that has already been earned or spent. It also looks at how the business can make even more money in the future. This means that you would look at ways to improve your toy shop, like adding new toys or having sales to bring in more customers.

Overall, positive accounting is a way for businesses to stay positive about their finances and make sure they're making and spending money in smart ways to be successful. It's kind of like counting toys, but with grown-up money!