Overview: The Expanded Accounting Equation

Overview:  The Expanded Accounting Equation

The purpose of this module is to help you understand the expanded accounting equation which provides the additional account information that describes the changes in the owners' contributed and earned equity accounts as can be seen in the tree of accounts below.

 

In later modules we will dig into the logic as to why the plus symbols are on the left-side of assets when they are increased and on the right side liabilities and equity accounts when they are increased.  For now, if you want to get a head start, the word "left" in accounting is "debit" and the word "right" in accounting is "credit".  So if you want to increase an asset, debit it.  If you want to increase a liability or an equity account credit it.

The topic videos in this module build upon each other and become progressively more challenging, so please make sure you really take the time to learn the fundamentals in each video as you progress because you will have a strong foundation to help you understand the later videos and related topics.

To Complete This Module

To complete this module, you will need to study all of the content pages and successfully complete the related topic and module quizzes. To successfully complete quizzes you need to achieve a score of at least 4 out of 5 for topical quizzes and achieve a score of at least 8 out of 10 for the module quiz. You may take and re-take quizzes as many times as necessary to master the material and get your passing score.

To track which content pages you have viewed and which quizzes you have successfully completed, click the "Modules" link on the course menu on the left.  A green check mark will appear to the left of each “Study” page that you have viewed and by each “Quiz” that you have successfully completed in the module. 

I anticipate that this module will take about 2 hours to complete.