However, Accounts Payable can also be considered a debit, depending on how you structure your chart of accounts. A debit balance in a payable account means that the company owes money, while a credit balance indicates that the company is owed money. Your accounts payable balance should always be considered...
The Accounting Equation Financial Accounting
Understanding how the accounting equation works is one of the most important accounting skills for beginners because everything we do in accounting is somehow connected to it. Shareholders' equity is the total value of the company expressed in dollars. Put another way, it is the amount that would remain if the company...
Special Journals Financial Accounting
Any entry relating to the sale of merchandise for cash is recorded in the cash receipts journal. Creating journal entries for each of your sales is an essential bookkeeping skill. You’ll need to use multiple accounts to show that you received money, your revenue increased, and your inventory value decreased...