August 4, 2022
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The Chart of Accounts is divided up into 5 major Chart of Accounts and Account TypesThere are 5 major account types in a company’s Chart of Accounts: • Assets •
“It’s Accrual World” Accrual basis accounting“It’s Accrual World”Accrual basis accounting is based on the “Matching Principal” which means the goal is to match revenues and expenses in the same period.In short, this means you record... is based on the “Matching Principal” which means the goal is to match revenues and expenses in the same period. In short, this means
Depreciation Expense When you purchase something “major” like a piece of machinery or equipment you do so because of the long term benefit you will derive from that “Fixed Asset.”
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