Category: Bookkeeping

Recognizing liabilities in the balance sheet can be tricky and a confusing bookkeeping responsibility. However, if you know the characteristics of a liability, you can categorize a transaction as one. In this case, your business has an obligation to do something for or to give something to another person or entity. For example, businesses have… continue reading

Think of retained earnings as savings, since it represents the total profits that have been saved and put aside (or “retained”) for future use. Debt is a liability, whether accounting equation may be expressed as it is a long-term loan or a bill that is due to be paid. Accounts receivable list the amounts of money… continue reading