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A digital document to help you understand the basic principles of small business accounting.
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The process of collecting, recording, and analyzing transactions and accounting events related to your business beginning with a transaction and ending with the inclusion of that transaction your business’s financial statements.
Entries posted on the right side of an account ledger that can signify either an increase in an equity, liability, or revenue account, or a decrease in an expense or asset account.
An accounting system that states that each individual financial transaction is recorded as either a debit or a credit and has equal and opposite effects in at least two different accounts. It can be illustrated by the accounting equation: Assets = Liabilities + Equity.
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