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Solid Footing Ch. 1

Normal Balances

We went through a lot of accounts in Assets, Liabilities, & Equity. Each of those accounts have what’s called a normal balance. The normal balance … Read More

Debits vs. Credits

The most critical thing to understand about debits vs. credits is: For every debit, there must be a credit. (This is referred to as double … Read More

Equity

Equity is essentially how much the company is worth. It’s the value of 100% stake in the company. There are two types of equity accounts … Read More

Liabilities

Liabilities are obligations that a firm still owes. PRO TIP: If an account has “Payable” next to it, it’s probably a liability. Just don’t forget … Read More

Assets

Assets, in essence, are… Assets are anything that provide economic value to a firm. Assets covers a lot of aspects of a business that provide … Read More

The Accounting Equation

The accounting equation is pretty simple… Assets = Liabilities + Equity …and serves as the basis of all accounting work that you’ll do in this … Read More