ALORE Acronym

The ALORE acronym, for training purposes, is a foundation to understand the required accounting entries to process a transaction. This method builds upon the accounting equation to determine more realistic business financial modelling.

• Assets
• Liabilities
• Owners Equity
• Revenue
• Expenses

ALO relate to the balance sheet, the RE relate to the profit and loss statement.

The above table outlines bookkeeping's simplest form, being; for every entry there is an equal and opposite entry. If you debit one account there must be an equal but opposite reaction to another account to reflect a true balance.

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