Bookkeeping

Ed would credit his Online store fee account as this is an expense account. It would increase the expense account’s normal balance by $50. In the realm of accounting, there exists an intriguing concept known as Contra Accounts. These accounts function as a counterbalancing mechanism, possessing a normal balance that is the opposite of their …

Balance Accounting: The Importance of Keeping Good Records Läs mer »

Current liabilities are usually paid with current assets; i.e. the money in the company’s checking account. A company’s working capital is the difference between its current assets and current liabilities. Managing short-term debt and having adequate working capital is vital to a company’s long-term success. In its most basic sense, a liability is a requirement …

What are Liabilities: Types, Examples and Contrasts with Assets Läs mer »