What are Debits and Credits?
What are Debits and Credits? “What are debits and credits?” is a common question for students. Debit and credit rules sound complicated, but debits and credits are simply the left and right sides of a ledger account. Debit is the left and credit is the right as you can see in this …
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Accounting Questions and Answers Learn the basics with these accounting questions and answers so you succeed with your accounting study.
Read MoreSummary of the Debit and Credit Rules
Summary of the Debit and Credit Rules This is a simple summary of the debit and credit rules. Use this rule to determine which accounts to debit and credit in double entry accounting. Because the rule is based on the accounting equation, it will always apply. Use this rule where …
Read MoreThe Accounting Equation
The Accounting Equation The accounting equation is the logic behind double entry accounting or accrual accounting. To understand this logic, you need to know there are five types of transactions in the accounting process. These types of ledger accounts are Assets, Liabilities, Owners Equity, Revenues and Expenses. Because this is …
Read MoreWhat is a Ledger Account?
What is a Ledger Account? This is a common question for beginning accounting students. There should be a ledger account for each financial transaction type. This example shows a columnar ledger account. Accounting software packages report transaction balances using this style. (Often people learn accounting using a T account ledger …
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