The Basics of Accounting Cheat Sheet

by psx via cheatography.com/128773/cs/25357/

Elements of Financial Statements Account Classi​fic​ation Practice T-Accounts (cont)

Official Account Types For Beginn​ers Specific Account Types Clas​sif​ica​tion KEEP IN MIND: The Debit and Credit Entry
1. Assets 1. Assets Accounts Payable Liability of Each Specific T-Account depends on
their Primary Classi​fic​ation which are as
2. Liabil​ities 2. Liabil​ities Cash Asset
follows
3. Capita​l/E​quity 3. Capita​l/E​‐ Notes Receiv​able Asset
Primary Classi​fic​ation of Dr. Cr.
quity Equi​pment Asset
Accounts
4. Invest​ments by 4. Revenues Company Name, Capita​l/E​quity
1. Assets (A) (+) (-)
Owners Capital
Cash or things like Land, Equipment, or
5. Distri​butions to 5. Expenses Supplies Expense Expense
Business Vehicles that could be
Owners
Buil​ding Asset CONVERTED into Cash
6. Revenues
Prepaid Rent Asset 2. Liabil​ities (L) (-) (+)
7. Expenses
Fees Earned Income​/Re​‐ Debts you owe an individual or other
8. Gains venue businesses (ex. Accounts Payable, Notes
9. Losses Office Equipm​ent Asset Payable, Loans, Unearned Revenue and
10. Compre​hensive Income etc.)
Misc​ell​aneous Expense Expense
Click Here for Video Reference 3. Capita​l/E​quity (C) (-) (+)
Common Stock Capita​l/E​quity
this is the Begi​nning Capital + Income -
Service Income Income​/Re​‐
The Accounting Equation Expenses
venue
Assets = Liabil​ities + Owner's also Owner's Equity = Assets - Liabil​ities
Unearned Fees Liability
Equity 4. Income​/Re​venues (I) (-) (+)
Supp​lies Asset
Computation for Total Owner's Equity Cash earned through Sales (INCREASES
Accounts Receiv​able Asset
Beginning (+) when Owner transfers CAPITAL)
Prepaid Expenses Asset
Capital Money from Personal Bank 5. Expenses (E) (+) (-)
Mortgage Payable Liability
Account to a Business
what you Spend money on to Operate the
Account (Company Name, Company Name, Capita​l/E​quity
Business (DECREASES CAPITAL)
Capital) Drawing
Click Here for Video Reference
Income/ (+) will ultimately INCREASE Click Here for Video Reference
Revenues Capital
Expe​nses (-) will ultimately DECREASE T-Accounts

Capital make Seperate Comput​ati​ons for Each

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Specific Account Type (ex. Cash, Accounts
Receiv​able, Supplies, Rent Expense and
etc.) in the form of T-Ac​counts to Tally the
Total of Each Account
the Debit and Credit of Each T-Acco​unt
must Bala​nce each other out
Debits money Taken from your account
to Cover Expenses
Cred​‐ money Coming Into your account
its

By psx Published 24th November, 2020. Sponsored by ApolloPad.com

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