Understanding Debits and Credits

In this course, you will learn about the accounting equation and the five categories involved in every business (Assets, Liabilities, Owner’s Equity, Revenue and Expenses). Every financial transaction falls into one or more of these categories. Learn how to create a chart of accounts that meet the needs of your business. You will learn how double entry bookkeeping works and the process of recording debits and credits. This course will show you how to identify, analyze and record transactions using journal entries under the cash basis accounting method. Agenda Unit 1: The Accounting Equation and Categories · The Accounting Equation · The Five Accounting Categories · The Chart of Accounts · Account Placement · Activity ~ Categorizing Accounts · Cash Basis Accounting vs. Accrual Basis Accounting Unit 2: Debits and Credits · T-Accounts · Debits and Credits · Double Entry Bookkeeping · Analyze Financial Activities (Transactions) Unit 3: Assets, Liabilities, and Owner’s Equity · Recording Transactions for Assets · Recording Transactions for Liabilities · Recording Transactions for Owner’s Equity Unit 4: Revenue and Expenses · Recording Transactions for Revenue · Recording Transactions for Expenses · Activity ~ Recording Transactions