Category: Bookkeeping – Introduction and Basic Understanding
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Bookkeeping – Chart of Accounts Using the Numbering System (Lesson 18)
To speed up the process of entering information accountants converted account names to numbers.
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Bookkeeping – Parent–Child Accounts (Lesson 17)
When one account is fed information from several sources based on function or location, this account structure is referred to as a ‘Parent-Child’ account.
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Bookkeeping – Debits and Credits with the Trial Balance (Lesson 16)
The primary report used by accountants is the trial balance. It is the job of the bookkeeper to make sure that it is in balance and that there are no abnormal values within the respective types of accounts.
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Bookkeeping – Complex Entries (Lesson 15)
Many bookkeepers are initially misinformed about the dual entry accounting system. They think that based on the wording that accounting entries have only two lines of information, one line for a debit and a second line for a credit. What the words dual entry mean is that debits must equal credits.
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Bookkeeping – Debits and Credits in Parenthesis with the Profit and Loss Statement (Lesson 14)
Both contra and atypical values are reported with parenthesis. The same presentation format is used when reporting contra and atypical values on the profit and loss statement (income statement).
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Bookkeeping – Debits and Credits with Parenthesis on the Balance Sheet (Lesson 13)
Contra information is always reported in parenthesis. Other financial information is also reported using parenthesis with the two primary financial statements. This lesson explains parenthesis in balance sheet accounts.
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Bookkeeping – Contra Accounts (Lesson 12)
Contra accounts are utilized to help present clearer information to readers of financial reports. They are used to improve the decision model.
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Bookkeeping – Chart of Accounts (Lesson 11)
To properly create a set of ledgers there must be a list of accounts. This list is referred to as the ‘Chart of Accounts’ or for shorthand – COA.
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Bookkeeping – Debits and Credits in Equity Accounts (Lesson 10)
The equity section of the balance sheet identifies the approximate dollar value of net worth accrued to the owners/investors. Equity accounts can have both credit and debit balances.
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Bookkeeping – Financial Statement Relationships (Lesson 9)
The financial statement reports illustrate changes in the businesses’ financial condition over time.