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  • Debit Credit Reminder Gestures V2

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    yourinnervisitor
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    The document introduces basic accounting equations for assets, liabilities, and owner's equity. It shows that assets equal liabilities plus owner's equity plus revenues minus expenses. It then provides a mnemonic device using hand gestures to remember whether transactions are recorded as debits or credits for different accounts. The gestures associate left/right hand positions and fingers with accounts, and up/down or in/out motions with debits and credits.

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    The document introduces basic accounting equations for assets, liabilities, and owner's equity. It shows that assets equal liabilities plus owner's equity plus revenues minus expenses. It then provides a mnemonic device using hand gestures to remember whether transactions are recorded as debits or credits for different accounts. The gestures associate left/right hand positions and fingers with accounts, and up/down or in/out motions with debits and credits.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    12 views1 page

    Debit Credit Reminder Gestures V2

    Uploaded by

    yourinnervisitor
    The document introduces basic accounting equations for assets, liabilities, and owner's equity. It shows that assets equal liabilities plus owner's equity plus revenues minus expenses. It then provides a mnemonic device using hand gestures to remember whether transactions are recorded as debits or credits for different accounts. The gestures associate left/right hand positions and fingers with accounts, and up/down or in/out motions with debits and credits.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
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    of 1

    Debit Credit Reminder Gestures.

    A = L + OE Basic Accounting Equation

    A = Assets
    L = Liabilities
    OEp+1 = Owner Equities, current
    OEp+1 = OEp + NI Carry over of Owner Equities
    OEp = Owner Equity (previous)
    OEp+1 = Owner Equity (present)
    NI = Net Income
    NI = R - E Net Income Equation
    R = Revenues
    E = Expenses

    Substituting in cascade.... This is the remaining equation

    A = L + OEp + R - E

    ______________________________________________________________

    Left Hand Right Hand

    Debits Credits

    Thumb Up/ Increases Assets Down/ Decreases Assets Pinkie

    Index/Pointer Down/ Decreases Liabilities Up/ Increases Liabilities Ring

    Middle Down/ Decreases Owner Equity Up/ Increases Owner Equity Middle

    Ring Down/ Decreases Revenues Up/ Increases Revenues Index

    Pinky(ie)/Little Up/ Increases Expenses Down/ Decreases Expenses Thumb

    Based on YouTube video “Trick to remember debits and credits”

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