Course

Debits and Credits

Learn about the fundamental building blocks of a company's financial accounting system: debits and credits.

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The Double-Entry System

Recording Journal Entries

The Importance of Zero

Debits and Credits Part 1

Debits and Credits Part 2

Recording Entries - Financing

Debits and Credits for the Income Statement

Recording Entries - Delivering Goods to Customers

Recording Entries - Paying for SG&A Expenses

Recording Entries - Inventory

Recording Entries - Purchasing Noncurrent Assets

Recording Entries - Selling Noncurrent Assets

Recording Entries - Bad Debts

Course Review

Course Quiz

Course Description

In the eighth lesson of our "Accounting 101" series, “Debits and Credits,” you will delve into the essential concepts of debits and credits, which are crucial for understanding financial statements and thinking like an accountant. This course emphasizes the importance of these foundational elements, which are vital for producing financial statements and understanding the ebb and flow of financial information. You will learn about the double-entry bookkeeping system, established by Luca Pacioli over 500 years ago, and gain the skills needed to build your own financial accounting system.

By the end of this course, you will able to answer questions such as:

• How is the double-entry bookkeeping system related to the fundamental accounting equation?
• How are revenues and expenses connected to the balance sheet through retained earnings?
• Why are debits and credits the fundamental building blocks of a financial accounting system?

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Debits
Credits
Accounting Equation
Double-Entry Bookkeeping
Journal Entries
General Ledger
Accountant
Financial Statements
Revenues
Expenses
Assets
Liabilities
Equity
Net Assets
Trial Balance
Balance Sheet
Income Statement
Profit and Loss

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