Tag: Credit
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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.
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Bookkeeping – Debits and Credits in Expense Accounts (Lesson 8)
Expense types of accounts are the easiest to understand in bookkeeping. In general only debits are entered in expense types of accounts.
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Bookkeeping – Debits and Credits in Cost of Sales Accounts (Lesson 7)
The Purchases Journal keeps track of the entries related to the cost of sales (cost of goods sold) accounts.
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Bookkeeping – Debits and Credits in Revenue Accounts (Lesson 6)
Revenue accounts are the most fun to watch as a bookkeeper. Revenue is the lifeblood for success. Without revenue, the company is doomed to go bankrupt.
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Bookkeeping – Debits and Credits in Liability Accounts (Lesson 5)
Whenever a business commits to purchase time or product and that employee delivers their time or the supplier delivers the product, you owe them money. This is a liability.
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Bookkeeping – Debits and Credits in Asset Accounts (Lesson 4)
Debits and credits are two words that are the most recognized terms synonymous to bookkeeping and accounting.