MBA Schools That Teach Accounting

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Leroy
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Re: MBA Schools That Teach Accounting

Post by Leroy »

Hungary Jack wrote:
Leroy wrote:
Arthur Dent wrote:
Leroy wrote:
Arthur Dent wrote:I had no idea what credits and debits are, so I googled it and found this:

http://www.lemoineandjames.com/gaap/23debits.html

Now that is extremely confusing. I think different terminology is needed.
Like what?
I don't know. It just seems backwards to call it a debit when you receive money and a credit when you pay it out. I think it might even be easier if you called it "red" and "blue" instead of "credit" and "debit" just get rid of the associations we have with those words.
I was thinking that was where you were going. And I agree that it is counter intuitive (or whatever that word is). But when you take it in context with all of the accounts as a whole, it makes sense. A debit on the balance sheet = good (cash, etc.). On the income statement bad (expense, etc.). And that is how I really thought of them when I first started.

But to simplify it to where you may want it, you may have to have to have a four color system. Black = balance sheet debit. Red = balance sheet credit. Then come up for colors for income (perhaps muave), and expense (perhaps perrywinkle). I'm just kidding about those last two colors. But in the end, the left hand side has to equal the right hand side, and that makes things very easy.
This is all BS. At the end of the day, it's all about cash flow.
Our company doesn't even do a statement of cash flows. :P

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Hungary Jack
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Re: MBA Schools That Teach Accounting

Post by Hungary Jack »

Leroy wrote:
Hungary Jack wrote:
Leroy wrote:
Arthur Dent wrote:
Leroy wrote:
Arthur Dent wrote:I had no idea what credits and debits are, so I googled it and found this:

http://www.lemoineandjames.com/gaap/23debits.html

Now that is extremely confusing. I think different terminology is needed.
Like what?
I don't know. It just seems backwards to call it a debit when you receive money and a credit when you pay it out. I think it might even be easier if you called it "red" and "blue" instead of "credit" and "debit" just get rid of the associations we have with those words.
I was thinking that was where you were going. And I agree that it is counter intuitive (or whatever that word is). But when you take it in context with all of the accounts as a whole, it makes sense. A debit on the balance sheet = good (cash, etc.). On the income statement bad (expense, etc.). And that is how I really thought of them when I first started.

But to simplify it to where you may want it, you may have to have to have a four color system. Black = balance sheet debit. Red = balance sheet credit. Then come up for colors for income (perhaps muave), and expense (perhaps perrywinkle). I'm just kidding about those last two colors. But in the end, the left hand side has to equal the right hand side, and that makes things very easy.
This is all BS. At the end of the day, it's all about cash flow.
Our company doesn't even do a statement of cash flows. :P
It probably doesn't have any.

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