A free, self-paced textbook in 7 chapters. Read a chapter, then drill it with the 170 companion flashcards using spaced repetition.
Accounting is the process of recording, summarizing, analyzing, and reporting the financial transactions of a business so that useful information becomes available for decision-mak...
At the heart of every accounting system lies the fundamental equation, Assets = Liabilities + Owner's Equity. This equation expresses the basic truth that every resource a business...
Every accounting system uses double-entry bookkeeping, recording each transaction with equal debits and credits so that the accounting equation always stays in balance. A debit is...
Financial reporting rests on a set of foundational principles and assumptions. The going concern assumption presumes that a business will continue operating indefinitely, which jus...
Assets are the building blocks of the balance sheet, but their costs are usually allocated over time. When a cost will provide a future benefit lasting more than one period, accoun...
Financial statements become truly useful when their numbers are compared and interpreted through ratios. Liquidity ratios measure a company's ability to meet short-term obligations...
Managerial accounting serves internal decision-makers with non-GAAP tools. The contribution margin is sales minus variable expenses, showing the amount available to cover fixed cos...