Be prepared to see things differently. Now when you go to the grocery store, you will think in your mind as you walk out, "Debit food, credit cash." When you go to the movies, you will think, "Debit entertainment, credit cash." When you get paid, "Debit cash, credit revenue." You will begin to see how little transactions become part of the bigger financial picture.
- Whew, you made it. … That may not have been the easiest thing you've ever done, … but by golly you made it. … Feel good about that. … Now you may not feel a hundred percent confident … that you've mastered all the intricacies … of debits and credits, but you're off to a good start. … It's true that you're probably not as comfortable as I am … with the topic, but keep in mind that I've been at this … for three and half decades. … You've just started. … But hey you started. … Let's review what we now know. … First the accounting equation, … assets equal liabilities, plus owner's equity, … that must always balance, always. … Second, debit means left and credit means right. … That's all, debit left, credit right. … Third, assets go up with debits and down with credits. … For liabilities and owner's equity accounts, … it's exactly the opposite. … They go up with credits and down with debits. … Fourth, journal entries are the building blocks … of financial statements. … Fifth, with each journal entry debits must always …
- Reviewing financial statements
- Analyzing transactions
- Categorizing transactions
- Obtaining financing and buying equipment
- How revenue and expenses fit in the accounting equation
- Recording the sale of goods or services
- Posting journal entries to accounts
- The accounting cycle: step by step
Skill Level Beginner
1. Review of the Financial Statements
2. Fours Steps in the Bookkeeping Process
3. How Transactions Affect the Accounting Equation
4. The General Ledger
5. Illustration of the First Three Steps in the Accounting Cycle
The role of computers3m 44s
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