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Accounting Stuff
Financial Accounting is built on one simple idea: The stuff that your business owns is equal to
the stuff that you owe
...
The accounting equation was
written down a long time ago by this guy in this book and it revolutionized the way we record
...
Credits represent the sources that economic benefit flows
from whereas debits represent the destinations that it flows to
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The next step is to post the journal into your general
ledger
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Ruff Times follows IFRS
or GAAP accounting principles IFRS and GAAP
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Ruff Times received $ 40,000 of cash during March but you actually earned that revenue over
the next twelve months
...
We can fix this situation by reversing 3 out of the 12 months of your subscription revenue which
is $ 10,000 and temporarily holding it as a liability in an account called deferred revenue or
unearned revenue
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Ruff Times has now hit a hundred thousand subscribers on this channel
...
I 've added a
new one covering the accounting cycle