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GAAP-FUNDAMENTALS4 MIN READ

Sort the Five Elements

Classify accounts into asset, liability, equity, revenue, and expense buckets.

Sort each account into the GAAP element it most directly represents. Asset Liability Equity Revenue Expense Operating bank cash balance Nine months of prepaid insurance coverage Customer deposit for future onboarding Accrued bonus earned but unpaid Common stock issued to founders Owner distribution approved by the board Monthly subscription service delivered Cloud hosting consumed to serve customers Employee wages for work already performed Consulting milestone completed for a customer

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