The Accounting Equation and Double-Entry System

Debits, Credits, and the Five Account TypesNext

Every bookkeeping decision traces back to one equation: Assets = Liabilities + Equity. This lesson breaks down why every transaction must keep that equation balanced, and how double-entry bookkeeping enforces it through matching debits and credits. You'll work through several transaction examples — a cash sale, a loan draw, an owner contribution — and see exactly how each one hits two accounts at once.

Foundations of Bookkeeping

The Accounting Equation and Double-Entry System Debits, Credits, and the Five Account Types The Chart of Accounts Journals and the General Ledger

Recording Transactions Accurately

Cash vs. Accrual Basis Accounting Recording Sales and Accounts Receivable Recording Purchases and Accounts Payable Bank Reconciliation Step by Step

Adjusting Entries and the Trial Balance

Why Adjusting Entries Exist Depreciation and Contra-Asset Accounts Preparing and Reading the Trial Balance

Inventory and Cost Accounting Basics

Inventory Costing Methods: FIFO, LIFO, and Weighted Average Recording Inventory Transactions Cost of Goods Sold Calculations

Financial Statement Preparation

Building the Income Statement Building the Balance Sheet The Closing Process

Payroll Accounting

Gross Pay, Net Pay, and Withholding Employer Payroll Taxes: FICA, FUTA, and SUTA Recording Payroll Journal Entries

Exam Readiness and Practice

Common CPB Exam Traps and How to Avoid Them Putting It Together: A Full Bookkeeping Cycle Walkthrough Where to Go Next: Practice Questions and the Exam Itself