Chapter 3

We've already learned about assets, but now we're going to break it down a bit further and differentiate between current and non-current.

We've already learned about Assets, but now we're going to break it down a bit further and differentiate between current and non-current.

We've already learned about Liabilities, but now we're going to break it down a bit further and differentiate between current and non-current.

We've already learned about Liabilities, but now we're going to break it down a bit further and differentiate between current and non-current.

The Classified Balance Sheet lets us see our assets and liabilities by groups, which gives us a little better overview.

Some businesses operate on the Cash Basis of accounting, but most are on the Accrual Basis. Cash is super simple, Accrual gets a little trickier.

If you pay for something today, should we recognize it as an expense? Well, it depends.

What happens when you get cash before you do any work? Or if you do work before you get any cash? That's what we're talking about here!

What even is an Adjusting Entry? Why do we have to make them?

An adjusting entry example using Supplies as the account of interest.

An adjusting entry example using Wage Expense and Wages Payable.

An adjusting entry example using Unearned Revenue as our medium.

An adjusting entry example using Interest as the account we care about.

A brief primer on what contra-accounts are, and what they aren't.

Our first look at Depreciation. This time, we're just going to look at straight-line depreciation. There's much more to come, but we'll save that for later.

The Closing Process isn't hard. I dare say that it's even fun. I'll show you why.