Accounting is really easy. It is not rocket science. In fact, your regular accountant may be, as the popular tv game would say, not as smart at your regular fifth grader.
If you don't believe me, ask him on the spot what's the sum of 21 and 18. Or any other pair of 2-digit numbers at that. Chances are he will still punch the thing on his calculator before giving an answer.
Joking aside, accounting is really based on the very simple equation of "assets equals liabilities plus owners' equity". The methods used are just means of ensuring the integrity of this equation.
I have written about this before and would like to share my thoughts with you in this free ebook entitled "Accounting for Non-Accountants: A five minute Accounting appreciation course".
To download, just click on the link above. Feel free to reproduce or redistribute it, provided you keep its contents unaltered, and provided you do not do it for profit. If you have any accounting concerns, kindly visit us at www.lumantao.com.