By Kenneth Boyd
A one-stop accounting reference
Packed with important info culled from the wide For Dummies accounting, bookkeeping, and auditing libraries, Accounting All-in-One For Dummies is a robust, one-stop reference.
Accounting All-in-One For Dummies is a accomplished source on a number of accounting options. you will get in control on: constructing your accounting method; recording accounting transactions; adjusting and shutting entries; getting ready source of revenue statements and stability sheets; making plans and budgeting on your enterprise; dealing with funds and making buy judgements; and more.
Accounting All-in-One For Dummies is a one-stop reference for college kids learning the appliance of accounting theories and a worthy table reference for accounting execs within the staff.
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Extra resources for Accounting All-in-One For Dummies
If you're facing the daunting challenge of preparing financial statements for a business, consult Books IV and V. If you own or manage a business, check out Books VI to VIII for information and guidance on managerial accounting. And if you're in charge of preventing and detecting incidents of fraud, check out the chapters in Book IX. com for free content that helps you learn more and do more. In this book… Wrap your brain around bookkeeping and accounting fundamentals. These basic concepts allow you to correctly post accounting transactions.
The bookstore now owns the books and owes Animal World $2,000, which is the cost of the 100 copies. This example focuses solely on recording the purchase of the books, not recording subsequent sales of the books and payment to Animal World. The bookstore has established a specific inventory asset account called “Inventory–Trade Paperbacks” for books like this. ” Therefore, the original journal entry for this purchase records an increase in the inventory asset account of $2,000 and an increase in the accounts payable account of $2,000.
Credits are always on the right. In journal entries, credits appear to the right of debits. See the next section for examples of journal entries. The following rules are also true, but with a few exceptions: Assets and expenses are debited to add to them and credited to subtract from them. In other words, for assets and expenses, a debit increases the account, and a credit decreases it. Liability, revenue, and equity accounts are just the opposite: These accounts are credited to add to them and debited to subtract from them.