Our popular accounting course is designed for those with no accounting background or those seeking a refresher. Thus, these problems should be noted by all companies […]

In this example, we will see how this accounting equation will transform once we consider the effects of transactions from the first month of Laura’s business. […]

This statement reflects profits and losses that are themselves determined by the calculations that make up the basic accounting equation. In other words, this equation allows […]

While the balance sheet is concerned with one point in time, the income statement covers a time interval or period of time. The income statement will […]

In this setup, you jot down all debit entries on the left and all credit entries on the right. To find the account balance, subtract the […]

In accordance with generally accepted accounting principles (GAAP), a contribution should be recorded at the fair value of the stock on the date received. Accepting donations […]

Some common examples of liabilities includeaccounts payable, notes payable, and unearned revenue. Recall that the basic components of even the simplest accountingsystem are accounts and a […]

Anything that can be quickly liquidated into cash is considered cash. Cash activities are a large part of any business, and the flow of cash in […]

Like the basic accounting equation, the expanded accounting equation shows the relationships among the accounting elements. In the expanded version, the “capital” portion is broken down […]