Tag: How to learn Accounting
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Ledgers – Features, Types and Benefits
A ledger is a book or a digital record that contains all the financial transactions of a business, categorized into different accounts.
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How to make a Chart of Accounts
A chart of accounts is a list of all the accounts a business uses to record its financial transactions. Each account represents a specific type of asset, liability, equity, revenue, or expense.
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Liabilities – Types and Characteristics
Liabilities represent the financial obligations of a business. These obligations arise from past transactions or events and require settlement in the form of cash, goods, or services. What Are Liabilities? In accounting, liabilities are defined as a company’s legal debts or obligations resulting from its operations. They are recorded on the right side of the…
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Assets- Types and Characteristics.
Assets represent everything a company owns that has value and can be used to generate future economic benefits. What Are Assets? In accounting, an asset is any resource owned or controlled by a business that is expected to produce future economic value. Assets can be tangible, like machinery or inventory, or intangible, like patents and…
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What is the Accounting Process
The accounting process is a systematic way to record, organize, and analyze financial transactions of a business. These steps ensures accuracy in financial reporting and helps businesses make informed decisions. 1. Identifying Financial Transactions The first step in accounting is to identify transactions that need to be recorded. These could include: Only transactions that have…
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What is Accounting- Accounting Cycle, Types and Importance
Account- To record or report an event. What is Accounting? Definition and Process When you think of accounting, what comes to mind? Spreadsheets, numbers, taxes or maybe even Ben Affleck? While these are part of the story, accounting is much more than crunching numbers. It’s the language of business—a way to record, summarize, and interpret…