The Balance SheetCheatsheet
Master the balance sheet: classify assets and liabilities, calculate working capital, and verify owner equity.
Master the balance sheet: classify assets and liabilities, calculate working capital, and verify owner equity.
Track cash flow across operating, investing, and financing activities to reconcile net income to ending cash.
Master the rules of debits and credits, normal balances, the DEALER mnemonic, and contra-account mechanics.
Read an income statement from revenue down to net income, calculating profitability margins and operating profit.
Master standard journal entry formatting, compound entries, and accrual adjusting entries with precise debit and credit layouts.
Learn what accounting does, the five account types, cash vs accrual, and the three core financial statements.
Build the organized, numbered list of every account your business uses to record its money.
Follow the full loop from transaction to closing that repeats every accounting period.
See why every transaction hits two accounts, and how that dual effect keeps the books self-checking.
Master the equation everything in accounting rests on: assets equal liabilities plus equity.
See how journal entries get posted into accounts, each keeping its own running balance.
List every account balance and confirm total debits equal total credits before you build statements.