The Balance Sheet is the next step in the Accounting Cycle after the Income Statement is completed. It is one of 3 financial statements that is prepared by an accountant. The other 2 are Income Statement and Cash Flow Statement. It reports the assets, liabilities, and capital of a business. The …

Goods for resale are the products that a business either produces or buys in bulk to sell for the purpose of making a profit. The cost of producing or buying these goods must be cheaper than the selling price that a business sets in order to make a profit. Even …

Accounts are shaped like a T that has a left side called Debit or Dr and a right side called Credit or Cr. Debit means to have, increase, go up or come in and Credit means don’t have, decrease, go down or go out. A simple way to look at …

In the financial records of a business, the liabilities, income and capital accounts are responsible for the business having assets and expenses to function. ALICE accounts fluctuate consistently throughout an accounting period and it is necessary to know what it means for them to have an increase and decrease in …

Studying principles of accounts can be very easy once you learn which items are Assets, Liabilities, Capital, Income and Expenses. The accounts that fall under these 5 headings are used throughout your POA course. You can even associate the ALICE accounts with action words, you OWN assets, OWE liabilities, EARN …