Fundamental Accounting Equation With Basic Transactions
What is the origin of accounting methods? What is the difference between owners’ equity and owner’s capital investment? Do owner’s withdrawals relate to that at all? This accounting 101 lesson will clarify the ideas of owner’s equity as it relates to the accounting equation. You will see simple examples of accounting transactions in the accounting equation so you can get the idea about how transactions in our system of accounting will work. These basic accounting concepts will build to the general ledger, T accounts and making debits and credits in future videos.
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