Reviewer for fundamental accounting in the BSBA program.
The Accounting Equation
Every transaction keeps this balanced — the foundation of double-entry bookkeeping.
| Element | Examples |
|---|---|
| Assets | Cash, receivables, equipment |
| Liabilities | Loans, payables |
| Equity | Capital, retained earnings |
Debits and Credits
| Account | Increased by |
|---|---|
| Assets | Debit |
| Expenses | Debit |
| Liabilities | Credit |
| Equity | Credit |
| Income | Credit |
A debit is not always "bad" or a decrease — for assets and expenses, a debit INCREASES the balance.
Financial Statements
The three core reports: Income Statement (profit/loss), Balance Sheet (financial position), and Cash Flow Statement.
Worked Example
Owner invests ₱100,000 cash and buys ₱30,000 equipment on credit.
Before your exam, make sure you can confidently explain and apply each of the following:
- The Accounting Equation
- Debits and Credits
- Financial Statements
- Worked Example
Re-read any section above where you hesitate, then explain it aloud in your own words — if you can teach it simply, you understand it. Focus your final review on the tables, formulas, and the common-mistake warnings, since those are where most points are won or lost.