Fundamentals Of Financial Accounting ((exclusive)) Site

Assets=Liabilities+Shareholders′ EquityAssets equals Liabilities plus Shareholders prime Equity

: Details the inflows and outflows of cash from operating, investing, and financing activities. Fundamentals of Financial Accounting

If you make a sale for $1,000 cash, you Debit Cash (Asset increases) and Credit Revenue (Equity increases). If you pay rent, you Debit Rent Expense and Credit Cash. If the total debits don't equal total credits, you have made a mathematical error. Fundamentals of Financial Accounting

For example, if a company buys a computer for $1,000 cash, the accountant would and Credit Cash (Asset decrease) . The equation remains balanced because one asset went up and another went down. Fundamentals of Financial Accounting

When learning the fundamentals of financial accounting, students and new business owners frequently stumble on these points: