Archive for August 2023
What are the account categories, their normal balances, and how do they affect financial statements?
Let’s say there were a credit of $4,000 and a debit of $6,000 in the Accounts Payable account. Liabilities increase on the credit side and decrease on the debit side. A credit records financial information on the right side of an account. A debit records financial information on the left side of each account. The Importance of Cash Flow…
Read MoreWhat are the account categories, their normal balances, and how do they affect financial statements?
Let’s say there were a credit of $4,000 and a debit of $6,000 in the Accounts Payable account. Liabilities increase on the credit side and decrease on the debit side. A credit records financial information on the right side of an account. A debit records financial information on the left side of each account. The Importance of Cash Flow…
Read More