Accounting Study Guides
31 comprehensive guides to help you master accounting concepts, from fundamentals to exam prep.
Mastering the Accounting Equation
The accounting equation (Assets = Liabilities + Equity) is the foundation of all accounting. This guide takes you from understanding the basic equation to analyzing complex transactions and understanding how every entry affects the balance sheet.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Perpetual vs Periodic Inventory System: Journal Entries and Worked Examples
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.
Payroll Journal Entries: Gross Pay, Withholdings, and Employer Taxes (Worked 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.