Assets
Understand what is notes receivable in accounting. We clarify if notes receivable is a debit or credit, detail essential notes receivable journal entries, and explain the difference between notes receivable and accounts receivable. Learn calculating interest on notes receivable and classification...
Liabilities
Understand what is notes payable in accounting, its classification, and why it is a liability. Learn the difference between accounts payable vs notes payable and see practical notes payable examples for correct journal entry and interest accrual.
Statements
The indirect method cash flow statement reconciles net income to actual cash flow. Understand the cash flow statement componentsOperating, Investing, and Financingand learn how to prepare an indirect cash flow statement to ensure your business stays liquid and solvent.
Bookkeeping
Learn the essential accounting for bad debt, including how to calculate bad debt expense and its impact on the income statement. Master the journal entry for bad debt write-offs and understand how to record bad debt recovery using the allowance method.
Statements
Demystify your financials! Understand the crucial difference between the income statement vs balance sheet. Learn how to calculate net income vs net loss, and exactly where to find net income on financial statements to master your business's profitability.
Assets
Understanding merchandise inventory accounting is crucial for financial health. Learn the difference between perpetual and periodic systems, discover how to value inventory using the weighted average inventory method, and master the cost of goods sold calculation.
Bookkeeping
Understand the accounting treatment for prepaid rent. Learn what type of account is prepaid rent, why it starts as a prepaid rent current asset, and the essential steps for creating prepaid rent journal entries and calculating adjusting entries monthly.
Equity & Capital
Learn the essential rules for accounting for treasury stock. Discover why treasury stock is a debit, master the journal entries for buying, retiring treasury stock, and reissuing treasury stock, and ensure correct presentation on the balance sheet.
Bookkeeping
Settle the debate: Is prepaid insurance an asset? Yes, it is a current asset. Learn the definition of assets, why prepaid insurance is an asset, and master the proper prepaid insurance accounting steps for your balance sheet.
Equity & Capital
Understand the critical "equity definition" and the trap of "what is negative equity." Learn "how to calculate equity" and implement strategies to prevent "negative shareholder equity" and "negative equity real estate" crises.
Bookkeeping
Deferred revenue is crucial for accurate financial reporting. Learn the deferred revenue definition, why it's a liability, and how to use accrual accounting to create the correct journal entry for deferred revenue. See practical deferred revenue examples and master the adjusting entries for defer...
Assets
Master calculating cost of goods sold and understand the accounting rules. We clarify if cost of goods sold debit or credit is correct and show how to record cost of goods sold journal entry step-by-step.
