Be careful not to let the general, non-accounting meaning of the words 'credit' and 'debit' confuse you. Let's review key terms in accounting that are often confusing or contradictory with their non-accounting meaning.
- Now, I want to remind you once again … that this is hard stuff. … Most people pull back at about this point in time, … right on the edge of the big breakthrough … and they just don't see it through. … Well, that's not going to be you. … In the very near future, the dots are going to connect, … and you will soon know what many individuals … just don't have the discipline to learn. … Debits and credits are a new language, … and learning a new language requires patience and effort. … Hang in there. … Your effort now will be so worth it later. … Now some words of caution. … First, be careful not to let the general non-accounting … meaning of the words credit and debit confuse you. … In general conversation, credit has an association … with plus and debit with minus. … But on the asset side of the accounting equation, … where debit means increase and credit means decrease, … this association can lead you astray. … In accounting, debit simply means left. … And credit simply means right. …
- 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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