Category: Bookkeeping

All of the money in your deposit accounts and investments, plus the value of your home, furnishings, vehicles and other valuable belongings are considered assets. This includes products purchased for inventory, office furniture, art and anything else that’s of value. As business transactions take place, the values of the elements in the accounting equation change. The… Continue reading Basic Accounting Principles: How to Stay GAAP Compliant

This would happen if a company brokeeven, meaning the company did not make or lose any money. If thereis a difference between the two numbers, that difference is theamount of net income, or net loss, the company has earned. An income statement shows the organization’s financialperformance for a given period of time. When preparing an… Continue reading 4 5: Prepare Financial Statements Using the Adjusted Trial Balance Business LibreTexts