1 style=’margin-bottom: 0px;’>How to Do Basic Accounting
Accounting is the language of business. People with knowledge of accounting can be helpful in a variety of ways in almost every field imaginable. Every single business must have someone to track their money and so do federal agencies. Understanding basic accounting can lead to a good career or simply financial literacy.
- Know the accounting equation. Assets = Liabilities + owner’s equity
- Understand T- accounts and the purpose of credits and debits. All debits and credits must be equal at the end and different type of accounts have different normal balance sides (side where balance increases).
- Know the purpose of different types of accounting documents and papers such as the general ledger, general journal, cash payments journal, sales journal, etc.
- Learn by doing problems and try to take a class if possible.
- Be patient.
- Work carefully.
- If you mess up in one part you will mess up in another.
- How to Choose Accounting Software
- How to Account For Accumulated Depreciation
- How to Open a Sheltered Investment Account
- How to Calculate Marginal Revenue
- How to Calculate Yield to Maturity
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