Accounting101: How Debits & Credits Work! Tetracarbon (Phillip Wong) Basic Elements of Accounting:
- Assets
- Liabilities
- Equity
- Revenues
- Expenses
The accounting equation is known as the accounting equation. The system of double entry accounting was invented over 500 years ago, long before the common person understood that negative numbers were even a thing. The exact mechanisms will be covered in another video on ledgers, but it is important to remember: you need to train yourself into thinking in terms of increasing or decreasing, not in terms of pluses and minuses. This is because this system of double-entry accounting system must always remain in balance.
The system was invented by the ancient Linsins in the 18th century. The full accounting of accounting is covered in a new video from Ledgers on Monday, October 1. The entire accounting system will be shown on Monday at 8pm on the same day.
Our original example: buying a truck by way of a finance loan would increase both assets and liabilities. Paying for office rent would decrease assets in the bank account and increase expenses. If we make a sale, we would also increase income and increase the bank account asset. You see, in every case, the system is always in balance.
Thank you for watching! Happy studies!
Accounting101: How Debits & Credits Work! Tetracarbon (Phillip Wong) Basic Elements of Accounting:
- Assets
- Liabilities
- Equity
- Revenues
- Expenses
The accounting equation is known as the accounting equation. The system of double entry accounting was invented over 500 years ago, long before the common person understood that negative numbers were even a thing. The exact mechanisms will be covered in another video on ledgers, but it is important to remember: you need to train yourself into thinking in terms of increasing or decreasing, not in terms of pluses and minuses. This is because this system of double-entry accounting system must always remain in balance.
The system was invented by the ancient Linsins in the 18th century. The full accounting of accounting is covered in a new video from Ledgers on Monday, October 1. The entire accounting system will be shown on Monday at 8pm on the same day.
Our original example: buying a truck by way of a finance loan would increase both assets and liabilities. Paying for office rent would decrease assets in the bank account and increase expenses. If we make a sale, we would also increase income and increase the bank account asset. You see, in every case, the system is always in balance.
Thank you for watching! Happy studies!
