A good effort but all the sign flipping gets confusing
Equity is on the same side of the balance sheet as liabilities because of the accounting equation: Assets = Capital + Liabilities. See this tutorial as well: http://www.principlesofaccounting.com/chapter%201.htm
I think the rules may differ in Europe (the way things are classified) Nope. Sales is NOT a liability, and there is no accounting fiction. Sales are also not an asset. They are an income. The money earned from the sale…
A good effort but all the sign flipping gets confusing
Equity is on the same side of the balance sheet as liabilities because of the accounting equation: Assets = Capital + Liabilities. See this tutorial as well: http://www.principlesofaccounting.com/chapter%201.htm
I think the rules may differ in Europe (the way things are classified) Nope. Sales is NOT a liability, and there is no accounting fiction. Sales are also not an asset. They are an income. The money earned from the sale…