Accounting Study Guides

Complete Guide to Journal Entries

Master the art of recording business transactions through journal entries. This comprehensive guide covers everything from basic entries to complex adjusting entries, with numerous examples and practice problems.

3-4 hours · 5 sections

Understanding and Analyzing Financial Statements

Learn to read, prepare, and analyze the four main financial statements: Income Statement, Balance Sheet, Statement of Retained Earnings, and Statement of Cash Flows. Understand how they connect and what they reveal about a company.

4-5 hours · 5 sections

Depreciation Methods Complete Guide

Master all depreciation methods including straight-line, declining balance, units of production, and sum-of-years-digits. Learn when to use each method and how to handle partial years, revisions, and disposals.

3-4 hours · 5 sections

exam prepadvanced

CPA Exam Strategy and Study Guide

Comprehensive guide to passing the CPA exam. Covers exam format, study strategies, time management, and section-specific tips for FAR, AUD, REG, and BEC.

2-3 hours reading (months of study) · 5 sections

How to Record Adjusting Entries: Step-by-Step with Examples for Every Type

A practical guide to adjusting journal entries covering the four types (accrued revenues, accrued expenses, deferred revenues, deferred expenses), when each is needed, how to record them step by step, and the common mistakes that throw off your financial statements.

25 min · 4 sections

Debits and Credits Explained: Which Accounts Increase, Which Decrease, and How to Never Get It Wrong

A clear, practical guide to debits and credits — the fundamental accounting concept that trips up every beginner. Covers the debit/credit rules for all five account types, how to apply them to journal entries, and the mental model that makes the rules stick.

20 min · 4 sections

How to Do a Bank Reconciliation Step by Step: Find Every Discrepancy and Balance to the Penny

A complete step-by-step guide to bank reconciliation — from gathering your bank statement and book records through identifying outstanding checks, deposits in transit, bank errors, and book errors, to adjusting journal entries that bring the two into agreement.

25 min · 4 sections

How to Prepare an Income Statement Step by Step: Revenue, Expenses, and Net Income Explained

A step-by-step guide to preparing a multi-step income statement from an adjusted trial balance — covering revenue recognition, expense classification, gross profit, operating income, and net income with a complete worked example.

20 min · 4 sections

How to Prepare a Trial Balance: Step-by-Step Process With Worked Example

A complete guide to preparing a trial balance — covering the purpose, the step-by-step process from ledger accounts to the final balanced report, how to find and fix errors when debits do not equal credits, and the difference between unadjusted, adjusted, and post-closing trial balances.

1.5 hours · 4 sections

Accounts Receivable and Accounts Payable: How AR and AP Work, Aging Schedules, and the Entries That Record Them

A practical guide to accounts receivable and accounts payable — covering how to record credit transactions, the AR and AP aging schedule, the allowance method for bad debts, and the journal entries students need to master for exams and real-world bookkeeping.

2 hours · 4 sections

Inventory Shrinkage Journal Entries: How to Record Lost, Stolen, and Damaged Inventory

A step-by-step guide to recording inventory shrinkage — covering the physical count to book value difference, the adjusting journal entry under perpetual vs periodic systems, when shrinkage goes to COGS versus a separate expense account, and the exact entries your professor expects to see for theft, damage, and miscounts.

1.5 hours · 4 sections

Cash Basis vs Accrual Accounting: How They Differ, When to Use Each, and What Changes on the Financial Statements

A complete comparison of cash basis and accrual accounting — covering how each method recognizes revenue and expenses, which businesses are allowed to use cash basis, how to convert between methods for exams, and the specific effects each method has on the income statement, balance sheet, and tax position.

1 hour · 4 sections

LIFO vs FIFO vs Weighted Average: How to Choose an Inventory Valuation Method and Calculate COGS

A complete guide to the three major inventory valuation methods — LIFO, FIFO, and weighted average — covering how each method calculates ending inventory and COGS, worked examples with the same dataset, the income and tax implications, and the specific exam traps that catch accounting students.

1.5 hours · 4 sections

Statement of Cash Flows: Direct vs Indirect Method, Line-by-Line Preparation, and the Reconciliation That Trips Up Students

A complete guide to preparing the statement of cash flows under both the direct and indirect methods — covering the three sections (operating, investing, financing), the step-by-step process for each method, the reconciliation of net income to cash from operations, and the specific exam traps that catch accounting students.

2 hours · 4 sections

Closing Entries: How to Close Temporary Accounts Step by Step at Period End

A step-by-step guide to closing entries — covering which accounts are temporary vs permanent, the four closing entries in order, how Income Summary works, and the post-closing trial balance that proves you did it right.

1.5 hours · 4 sections

Bonds Payable: How to Record Issuance at Premium, Discount, and Par With Amortization

A guide to bonds payable accounting for students — covering bond issuance at par, premium, and discount, the journal entries for each scenario, straight-line and effective interest amortization of premium and discount, and the balance sheet presentation of bonds payable.

2 hours · 4 sections

Accrued Expenses vs Accrued Revenues: Journal Entries and Adjusting Entry Examples

A step-by-step guide to accrued expenses and accrued revenues — covering what each one represents, when to record them, the exact journal entries at the adjusting entry date and the subsequent cash transaction date, and the most common student mistakes on exams and homework.

25 min · 4 sections

Revenue Recognition 5-Step Model (ASC 606): How to Apply It with Journal Entry Examples

A complete guide to the ASC 606 revenue recognition standard — covering the 5-step model for revenue recognition, how to apply each step to typical transactions, journal entries for common scenarios including long-term contracts and multiple performance obligations, and the common exam traps students encounter.

35 min · 4 sections

Allowance for Doubtful Accounts vs Direct Write-Off Method: Journal Entries Explained

Master the two methods for handling uncollectible accounts receivable. Walk through the exact journal entries for estimating bad debt, writing off a specific account, and recovering a previously written-off receivable — with worked examples for both the percentage of sales and aging of receivables approaches.

30 minutes · 6 sections

Perpetual vs Periodic Inventory: Journal Entries Compared

Learn the exact journal entries for both inventory systems — from purchase to sale to year-end adjustment. Walk through worked examples for inventory purchases, sales, returns, freight, purchase discounts, and the critical year-end close, with a side-by-side comparison of both approaches.

35 minutes · 7 sections

Payroll Journal Entries: Gross Pay + Withholdings (5 Examples)

Payroll is one of the most-confused topics in introductory accounting because a single paycheck generates three separate journal entries — the employee side, the employer-tax side, and the cash disbursement. This guide walks through each entry with a full worked example, explains why FICA shows up twice, and covers the accrual needed at period end.

35 minutes · 7 sections

Stock Dividends vs Stock Splits: Journal Entries and Worked Examples

Stock dividends and stock splits both increase shares outstanding without changing total equity value, but they use completely different journal entries — and one is not really a journal entry at all. This guide walks through small stock dividends, large stock dividends, and stock splits with full worked examples and explains the critical 20-25% threshold that determines which treatment applies.

30 minutes · 6 sections

Notes Receivable: Interest, Discounting, and Journal Entries (Worked Examples)

Notes receivable look simple until you hit accrued interest across year-ends, discounting at the bank, or dishonored notes. This guide walks through the full journal entry lifecycle — issuance, interest accrual, collection, discounting, and default — with worked examples on both interest-bearing and non-interest-bearing notes.

35 minutes · 6 sections

Intangible Assets: Amortization, Goodwill, and Impairment Journal Entries

Intangible assets are recorded, amortized, tested for impairment, and sometimes written off entirely — with different rules for definite-lived intangibles, indefinite-lived intangibles, and goodwill. This guide walks through the full lifecycle with worked examples covering patents, trademarks, customer lists, and goodwill from a business combination.

35 minutes · 6 sections

Deferred Revenue and Unearned Revenue: Journal Entries for SaaS, Subscriptions, and Gift Cards

Deferred revenue (unearned revenue) journal entries walk through revenue recognition for subscriptions, SaaS, gift cards, and pre-payments with full worked examples.

30 min · 7 sections

Operating vs Finance Lease ASC 842: Classification, Journal Entries, and Worked Examples

ASC 842 requires lessees to record nearly all leases on the balance sheet. This guide explains the operating vs finance lease classification tests, required journal entries at inception and over the lease term, and walks through worked examples of each.

40 min · 7 sections

Sales Returns and Allowances Journal Entries: Worked Examples

Sales returns and sales allowances reduce net sales without touching gross revenue. This guide walks through the contra-revenue mechanics, the matching inventory reversal, and 6 worked journal entries for full returns, partial allowances, restocking fees, and returns crossing year-end.

45-60 min · 8 sections

Cash Dividends: Declaration vs Payment Journal Entries Worked

Cash dividends create three distinct dates — declaration, record, and payment — but only two journal entries. This guide walks through the dividend lifecycle, the contra-equity (Dividends) account, the matching liability, and 5 worked examples covering declaration, payment, dividends in arrears, partial payments, and the year-end closing entry.

40-50 min · 6 sections

Bond Retirement and Early Extinguishment of Debt: Journal Entries Worked Examples

A walkthrough of the journal entries for bond retirement at maturity, before maturity (early extinguishment), and through call provisions. Includes gain or loss calculation, treatment of unamortized premium or discount, and the bond issue cost write-off under ASC 470.

40-55 minutes · 8 sections

Lower of Cost or Market (LCM) Inventory Write-Down: ASC 330 Journal Entries

A worked guide to inventory write-downs under ASC 330. Covers Lower of Cost or Net Realizable Value (LCNRV) for FIFO and weighted-average inventory and the legacy Lower of Cost or Market (LCM) ceiling/floor rule still used for LIFO. Includes journal entries for direct write-down and allowance methods.

35-50 minutes · 8 sections

Adjusting Entries: The Complete Guide With 5 Worked Examples

A comprehensive pillar guide to period-end adjusting entries under accrual accounting. Covers all five categories — prepaid expenses, unearned revenue, accrued expenses, accrued revenues, and depreciation/estimates — with worked journal entries, an end-to-end adjusted trial balance walkthrough, and an error-frequency comparison drawn from common CPA exam misposting patterns.

50-65 minutes · 11 sections

Financial Statements: The Complete Guide With Worked Tie-Out

A pillar guide to the four primary financial statements (income statement, balance sheet, statement of cash flows, statement of stockholders equity), how they articulate together, and how to walk from a trial balance to a complete set of statements. Includes a full end-to-end worked example with cross-statement reconciliation, plus the closing process that resets the books for the next period.

55-70 minutes · 10 sections

ASC 606 Revenue Recognition: 5-Step Model With Worked SaaS Examples

A focused cluster guide on the ASC 606 revenue recognition standard with full 5-step model walkthrough and four worked examples spanning SaaS subscriptions, multi-element software contracts, percentage-of-completion construction contracts, and gift cards. Covers performance obligations, variable consideration, and the over-time vs point-in-time recognition decision.

40-55 minutes · 9 sections

Ratio Analysis: Current, Quick, Debt-Equity, ROE With Comparison Table

A focused cluster guide on financial ratio analysis — liquidity (current, quick, cash), solvency (debt-equity, debt-assets, interest coverage), profitability (gross margin, operating margin, net margin, ROA, ROE), and efficiency (asset turnover, inventory turnover, receivables turnover) — with a 5-company comparable analysis and the DuPont decomposition of ROE.

40-50 minutes · 6 sections

Balance Sheet vs Income Statement: Side-by-Side Comparison

A direct side-by-side comparison of the two primary financial statements: what each reports, the time dimension difference (snapshot vs period), how they connect through retained earnings, and the most common confusions students make on the CPA FAR section. Includes a worked example tying both statements together.

25-35 minutes · 6 sections

Cash Flow Statement: Direct vs Indirect Method Compared

A complete comparison of the two methods of preparing the operating activities section of the statement of cash flows. Covers what each method shows, why most US public companies use indirect, the line-by-line reconciliation between net income and cash from operations, and a parallel worked example showing the same company under both methods.

30-40 minutes · 6 sections

Statement of Stockholders Equity: The Often-Skipped 4th Statement

The statement of stockholders equity is the often-skipped fourth primary financial statement that reconciles beginning to ending balances in common stock, additional paid-in capital, retained earnings, treasury stock, and accumulated other comprehensive income. This guide walks through each component, the transactions that affect each, and a full worked example.

25-35 minutes · 5 sections

Accrual vs Deferral Adjusting Entries: When to Use Each

A focused comparison of the two big categories of adjusting entries: accruals (expenses or revenues recognized BEFORE cash) and deferrals (cash received or paid BEFORE recognition). Covers the timing logic, the four sub-types, journal entries for each, and a worked example showing all four sub-types in parallel.

25-35 minutes · 5 sections

Depreciation Adjusting Entries: Methods and Worked Examples

Period-end depreciation adjusting entries explained: the four depreciation methods (straight-line, double-declining-balance, units-of-production, sum-of-years-digits), when each is used, and a parallel worked example computing depreciation on a single $50,000 asset under all four methods to show how period-end entries differ.

30-40 minutes · 5 sections

Prepaid Expenses Adjusting Entries: Step-by-Step Walkthrough

A focused walkthrough of prepaid expense adjusting entries: the initial recording of the prepaid asset, the period-end recognition of the consumed portion, common prepaid categories (insurance, rent, supplies, software), and worked examples for partial-period and full-period scenarios.

20-30 minutes · 5 sections

Percentage of Sales vs Aging Method: Bad Debt Estimation Worked Examples

A side-by-side walkthrough of the two GAAP-permitted approaches to estimating uncollectible accounts under the allowance method — income statement (percentage of sales) and balance sheet (aging of receivables) — with full journal entries and reconciliations.

30-40 min · 7 sections

Bank Reconciliation Step by Step: Deposits in Transit, Outstanding Checks, and Adjusting Entries

A complete walkthrough of monthly bank reconciliation — book side adjustments, bank side adjustments, two-column layout, and the journal entries that follow. With worked examples covering NSF checks, bank service charges, errors, and EFT timing.

30-40 min · 7 sections

Closing Entries: Temporary vs Permanent Accounts Step by Step

A complete walkthrough of the closing entry process — the four-step closing sequence, how temporary accounts (revenues, expenses, dividends) feed retained earnings, and worked examples for both sole proprietorships and corporations.

25-35 min · 8 sections

Horizontal vs Vertical Analysis of Financial Statements: Worked Examples

A practitioner-level walkthrough of horizontal (trend) analysis and vertical (common-size) analysis with full computations on a real-sized income statement and balance sheet, and how analysts combine the two for a complete picture.

25-35 min · 7 sections

Contra Accounts Explained: Accumulated Depreciation, Allowance & Journal Entries

A contra account carries a balance opposite to the account it offsets, reducing it to a net value without erasing the gross. Here are the four types, their normal balances, and the journal entries with worked examples.

25-30 min · 6 sections

Petty Cash Fund: Establishment, Replenishment & Journal Entries

The petty cash fund runs on the imprest system — fund it once, record expenses only at replenishment, and reconcile shortages through Cash Short and Over. Full journal entries with worked examples.

20-25 min · 6 sections

Treasury Stock: Cost Method vs Par Value Method Journal Entries

Treasury stock is a company’s reacquired shares — a contra-equity account. Here are the cost method and par value method journal entries, reissuance above and below cost, and why no gain or loss ever hits the income statement.

25-30 min · 6 sections

Trial Balance Errors: How to Find and Correct Them (Worked Examples)

A balanced trial balance does not prove the books are right. Here are the errors a trial balance catches, the ones it hides, the divide-by-9 and divide-by-2 tricks, and how to write correcting entries.

20-25 min · 6 sections

Accelerated Depreciation: Double-Declining vs Sum-of-Years Worked

Accelerated depreciation front-loads expense recognition relative to straight-line. Here is exactly how double-declining-balance and sum-of-years-digits work, when each is appropriate, and three fully worked depreciation schedules.

20-25 min · 7 sections

Deferred Tax Assets vs Liabilities: Temporary vs Permanent Differences

Book income and taxable income rarely match. Some differences reverse over time (temporary, creating deferred tax assets or liabilities) and some do not (permanent). Here is exactly how each works, with three worked examples and the journal entries.

22-28 min · 8 sections

Capitalize vs Expense: Improvements vs Repairs With Worked Examples

The choice between capitalizing a cost as part of an asset or expensing it immediately changes income, cash flow, and the balance sheet for years. Here is exactly how the rules work, with four worked examples and the journal entries.

20-25 min · 8 sections

Paid-in Capital, Retained Earnings, Treasury Stock: Balance Sheet Equity Walkthrough

The stockholders’ equity section bundles three very different things: amounts paid in by investors, amounts earned and kept by the company, and amounts paid out to repurchase shares. Here is exactly how each line builds with worked transactions and the journal entries.

20-25 min · 7 sections

Operating vs Investing vs Financing: Cash Flow Classification Worked

Every cash flow lands in one of three buckets — operating, investing, or financing — and the classification often matters more than the dollar amount. Here is exactly how to classify each line with a decision tree and twelve worked transactions.

22-28 min · 8 sections

Is There a Photomath for Accounting? What Actually Solves Accounting Problems in 2026

Photomath solves math, not accounting. This guide breaks down what actually happens when you point each major homework app at a journal entry problem, and which tools genuinely handle debits, credits, and multi-step accounting work.

15-20 minutes · 6 sections

exam prepbeginner

ChatGPT for Accounting Homework: Where It Helps and Where It Gets Debits and Credits Wrong

ChatGPT is the best free accounting explainer available and an unreliable accounting mechanic. This guide maps exactly where it shines, the five ways it botches journal entries, and the prompts that limit the damage.

15-20 minutes · 6 sections