• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint

Summary

In this chapter, you have learned about some of the preliminary aspects of balance sheets: their uses, their construction, their current asset components, and their relationships to underlying accounts. Changes over time in these accounts cause changes in your company's worth, and thus in its balance sheet. However, revenue and expense accounts are treated differently at the end of an accounting period than are asset and liability accounts.

While it is not this book's purpose to teach accountancy, the use of some accounting terminology is necessary in a discussion of the measurement of profit. As well, some discussion of certain rules used in double-entry accounting—such as recording an increase in an expense account as a debit entry—is necessary if you are to measure your profits in a way that others can understand.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint