A T-account is a simplified or informal version of an account used to show increases and decreases in recording business transactions. It is called a T-Account because it is shaped like the letter T....
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The key to understanding how accounting works is to understand the concept of Normal Balances. What are Normal Balances? In accounting, a Normal Balance is the expected balance for a specific...
In accounting, Debit means the left side of an account and Credit means the right side of an account. We increase and decrease accounts by debiting them or crediting them. Knowing whether to debit or...
Using Double-entry Accounting, every business transaction impacts at least two accounts. Those accounts are increasing or decreasing. In accounting, rather than using positive and negative numbers to...
Learning how to do Journal Entries is at the core of learning accounting. Following these step-by-step directions will help you understand how to do journal entries like a pro. What is a Journal...
Financial Statements are reports that summarize business transactions. Financial Statements are produced at regular intervals in the business year (monthly, quarterly, annually) to help owners,...