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Equity & Capital

Is Capital Debit or Credit?

Demystify accounting basics and learn what is capital in accounting. Discover why capital is a liability and whether it is a debit or credit. We break down the journal entry for capital and ensure you start understanding capital accounts with confidence.

Revenue

Is Sales Discount Debit or Credit?

Unravel the mystery: Is a sales discount a debit or credit? Learn how to record sales discounts in accounting. This contra revenue account is key to improving cash flow. Get a step-by-step sales discount journal entry example and master debits and credits in accounting today.

Equity & Capital

Common stock debit or credit?

Is common stock a debit or credit? Unravel the mystery of equity in accounting. Learn the rules of debits and credits, see common stock journal entries, and understand the accounting for stock repurchase transactions.

Equity & Capital

Is investment debit or credit?

Confused about accounting for investments? Discover what is an investment in accounting and learn the fundamental rules of debits and credits. See practical investment journal entries and master how to record investments in accounting correctly.

Assets

Is equipment debit or credit?Unpacking the Accounting Mystery

Is equipment debit or credit? Equipment is a fixed asset, meaning it increases with a debit. Learn the essential accounting journal entries for equipment, including purchase, depreciation accounting, and disposal, to master understanding debits and credits.

Assets

Is Goodwill debit or credit? Unraveling the Mysteries of Accounting's Intangible Asset

Discover what is goodwill in accounting and why this intangible asset is always a debit. We detail the goodwill calculation, the correct journal entry for goodwill, and the rules for impairment of goodwill, ensuring you know how to record goodwill in accounting accurately.

Assets

Is purchase debit or credit?

Discover what are purchases in accounting and master the rules of debits and credits. Learn to create accurate journal entries for purchases, including cash purchase journal entry example and credit purchase journal entries using accounts payable entries.

Assets

What type of account is cost of goods sold?

Discover "what is cost of goods sold" and why it's a crucial expense account. We break down the "cost of goods sold calculation formula," its role in the income statement, and provide a simple cogs journal entry example for mastering cost accounting.

Revenue

What type of Account is Sales Returns and Allowances?

Understand the essential accounting treatment for sales returns and allowances. Learn the difference between a return vs allowance, how to record the sales returns journal entry, and why this contra-revenue account is vital for accurate net sales calculation.

Assets

Is Depreciation Expense Debit or Credit?

Unravel the mystery of depreciation accounting entries. We explain what is depreciation in accounting, confirm that depreciation expense is a debit, and show you the exact journal entries for depreciation. Learn how to calculate depreciation using straight line method and understand its financial...

Assets

Is Merchandise Inventory Debit or Credit?

Is merchandise inventory a debit or credit? Understand the core principles of inventory accounting and double entry bookkeeping. Learn how to record merchandise inventory journal entries and master the accounting for inventory purchases to ensure accurate financial reporting.

Revenue

Is revenue an asset or equity?

Is revenue an asset or equity? Understand the true revenue definition and its role in accounting. Revenue is recorded on the income statement, not the balance sheet, but it significantly impacts both assets and equity.