Category:Bookkeeping
andrei
May 14, 2024
Bookkeeping
In addition to the three Balance Sheet Categories (Assets, Liabilities, and Equity), a Chart of Accounts also includes Income and Expenses, the “Income Statement Categories” used to create a business’ Income Statement. Taking out a loan, on the other hand, increases Assets (by the amount the business receives as loan proceeds) and Liabilities (by the amount of debt owed), again by equal amounts to balance out both sides of the equation. Everyone agrees that direct labor and direct materials are […]
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