Tracking expenses, liabilities, and equity

Overview

In this third course, you will learn about liability and equity accounts and its effect on the balance sheet. If you have mastered bookkeeping basics and understand accounting assets, you are ready to jump into Liabilities and Equity in Accounting. You will explore the various types of liability, including: current and long term, payroll, and sales tax. Additionally, you will learn about the equity portion of the accounting equation and how to account for changes in owner’s equity. By the end of this course, you will be able to: -Describe the three main characteristics of liabilities. -Demonstrate an understanding of the basic payroll accounting functions and tasks. -Compare and contrast the different types of equity -Use the accounting equation to describe the financial position of an organization. Courses 1 and 2 in the Intuit Bookkeeping Professional Certificate, or the equivalent, are recommended prerequisites for this course.

Syllabus

Tracking financial obligations

This module introduces the concept of financial obligations and their role in a business’s accounting system. You will explore different types of liabilities, how they appear in financial statements, and the relationship between liabilities, equity, and the accounting equation.

Recording current liabilities

This module teaches how to record and manage current liabilities, including accounts payable, lines of credit, deferred revenue, and sales tax payable. You will explore how these liabilities impact the accounting equation and practice recording related transactions accurately in financial statements.

Recording long-term liabilities

This module explores how to record and manage long-term liabilities, such as loans, mortgages, and other long-term financial obligations. You will practice using amortization schedules to allocate principal and interest, track loan balances, and accurately reflect these liabilities in financial statements.

Recording payroll

This module introduces the payroll process and teaches how to record payroll transactions accurately. You will explore payroll systems, tax withholdings, employee classifications, and journal entries to ensure compliance and proper financial reporting.

Reporting equity

This module explores how bookkeepers record and report equity to reflect a business owner’s financial interest in the company. You will analyze how investments, withdrawals, and retained earnings affect the accounting equation and overall financial health.

Summary activity and exam: Tracking expenses, liabilities, and equity

This module reinforces key bookkeeping concepts related to expenses, liabilities, and equity. You will apply your knowledge through glossary challenges and realistic scenarios that demonstrate how transactions affect financial statements and the accounting equation.