By: Cameron Brosamer
What do you think of when you hear the word accounting? I think of debits and credits. These are two fundamental basics that anyone who deal with accounting must know. Without going into too much detail, debits must equal credits for every exchange the company makes. Debit is money taken out of a bank account, credit is an amount of money that is put into a bank account, this money can be borrowed or spent. Every transaction will be recorded in the general ledger so that all expenses are accounted for. Another way to think of credits and debits is a debit is like a checking account, and a credit is like a savings account. You can draw money from a checking account, but not directly from a savings account. Overall, debits and credits are one of the most important, fundamental pieces of accounting.
I really liked your post. It gave a very basic understanding of what the ground-floor of accounting is without boring us with a long post. The only part I was confused on is how the basics of accounting related to the overall blog of engineering.
ReplyDeleteThank you for the question. I recently switched my major to business preference and I wanted to keep the blog about my major, therefore switching the topic to my related major.
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