Assets and liabilities are basic accounting terms that would be one of the first topics presented to a student in a bookkeeping or accounting class, and I personally think that it is essential for every small business owner to understand this basic accounting terminology as well.
Assets are items on a company’s balance sheet that provide future economic benefits to a company. Some common examples of assets include:
One of the most important concepts when teaching bookkeeping for beginners is that bookkeeping entries are completed in pairs, which is referred to as double-entry bookkeeping (or double-entry accounting). Each pair of entries consists of a debit entry and a credit entry, and the pair of entries are simultaneously applied to different general ledger accounts (e.g. cash, accounts receivable).
32% of Canadians don’t know the differences between RRSP and TFSA accounts for investing, according to a report by BMO Financial Group from earlier this year.
Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs) are types of accounts in Canada that provide incentives for us to save money, and there are a few important differences between RRSP and TFSA accounts.
Johnathan Klimo, CFA