Chapter 3

A "normal" balance just means what side of the account the increases go on. Here we're going to determine normal for Assets and Liabilities.

Shareholder's Equity has a normal balance, just like every other account. It's pretty simple to determine, not unlike Assets and Liabilities.

I told you that understanding normal balances is super important, so we're not done yet. This shortcut has to do with Double Entry Accounting. Excited? You probably should be.

You'll be DEAD if you forget this. Forgive my cheesiness.

The Journal, Ledger, and Trial Balance are how we keep track of what is going on day-to-day in our business.

The single step Income Statement is what we're used to dealing with, but the Multistep Statement gives us much more visibility into the information that actually matters.

Gross vs Net? What do those words mean? What's the difference between those two "profits"?

Profit Margin is crucial for businesses to optimize. Let's take a look at what it actually is.