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
Read the full lesson
Sign up free — one personalized lesson every day, matched to your role and goals.
Already have an account? Sign in