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Liabilities and Equity in Accounting

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.

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.

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What's inside

Syllabus

Liabilities and Equity in Accounting

In this module, you will be introduced to different liabilities and learn how to account for them. Additionally, you will learn how to work with the sales tax payable accounts.

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Builds on previous courses in the program, ensuring progression and continuity in learning bookkeeping

Specifically designed for learners with prior knowledge in bookkeeping basics and accounting assets

Facilitates deeper understanding of liabilities and equity in accounting

Provides practical examples and scenarios for learners to apply their bookkeeping knowledge

Course instructors are acknowledged experts from Intuit Academy Team, lending credibility to the content

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Reviews summary

Foundational accounting: liabilities and equity

According to students, this course provides a solid foundation in accounting for liabilities and equity, making it ideal for beginners or those seeking a comprehensive refresher. Learners frequently praise the clear explanations and practical examples that help demystify complex accounting concepts. The well-structured modules and helpful quizzes are often cited as strong points, aiding in understanding and retention. While many find the content highly relevant for professional use, some more experienced learners suggest it lacks advanced depth. Overall, it's considered a largely positive and effective step in the Intuit Bookkeeping Professional Certificate pathway, though prerequisite knowledge is essential for success.

Offers strong basics, but not for advanced learners.

"This course is excellent if you're building a foundation in accounting, but it won't delve into highly advanced topics."

"As an intermediate learner, I felt some sections were a bit too basic for my needs, but it was a good refresher."

"It's perfect for a solid grasp of the basics, though I'll need other resources for advanced equity issues or complex cases."

Prior accounting knowledge is crucial for success.

"Make sure you've taken the first two courses in the certificate, as this one builds directly on that foundational knowledge."

"I struggled initially because I skipped the prerequisites, so definitely complete them first for a smoother learning experience."

"This course assumes you have a basic understanding of accounting assets, which is important to know going in."

Quizzes and scenarios reinforce learning effectively.

"The practice problems at the end of each module were incredibly useful for testing my understanding and retention."

"I liked the quizzes; they really helped me solidify what I learned and identify areas I needed to revisit."

"Working through the common accounting scenarios in the final module really tied everything together comprehensively."

Course material is directly applicable to real-world scenarios.

"The examples provided were very practical and relatable to actual business scenarios, enhancing my understanding."

"I appreciate how relevant this course is to my work in small business accounting; it fills crucial knowledge gaps."

"The scenarios and exercises helped me apply what I learned immediately to my job, which is exactly what I needed."

Complex accounting concepts are presented clearly and simply.

"The instructor did an excellent job breaking down complex topics into digestible parts, making them easy to grasp."

"I found the explanations really clear, especially for someone new to liabilities and equity principles. Very well-paced."

"Everything was explained so simply; it helped me grasp concepts quickly and apply them immediately to practice problems."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Liabilities and Equity in Accounting with these activities:

Follow Tutorials on Sales Tax Accounting

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Gain a deeper understanding of sales tax accounting through guided video tutorials.

Browse courses on Sales Tax

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Search for online tutorials or video courses on sales tax accounting.
Select a reputable source and follow the tutorial step-by-step.
Take notes and complete any exercises or practice problems provided.
Review the material regularly to reinforce your understanding.

Create a Glossary of Accounting Terms

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Compile a list of accounting terms covered in the course to reinforce understanding and provide a resource for reference.

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Review course materials and identify key accounting terms.
Define each term clearly and concisely.
Organize terms alphabetically or by category.
Consider providing examples or real-world applications for each term.
Review and revise the glossary regularly to ensure accuracy and comprehensiveness.

Discuss Case Studies on Liabilities and Equity

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Engage with peers to analyze real-world scenarios and apply course concepts.

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Form a study group with classmates.
Select case studies or scenarios related to liabilities and equity.
Research and prepare for the discussion.
Meet with the group to discuss the case studies, share insights, and answer questions.
Summarize the discussion and key takeaways.

Four other activities

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Solve Accounting Equation Practice Problems

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Engage in targeted practice to strengthen understanding of the accounting equation and its components.

Browse courses on Accounting Equation

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Gather practice problems from textbooks or online resources.
Solve the problems using the accounting equation (Assets = Liabilities + Equity).
Check your answers and identify areas for improvement.
Repeat the process to reinforce your understanding.

Attend a Payroll Accounting Workshop

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Deepen understanding of payroll accounting concepts and gain hands-on practice.

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Research and locate a reputable payroll accounting workshop.
Register for the workshop and pay any necessary fees.
Attend the workshop and actively participate in discussions and exercises.
Take notes and ask questions to enhance your comprehension.

Participate in an Accounting Quiz Bowl

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Test your knowledge in a competitive setting and enhance your critical thinking skills.

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Locate or organize an accounting quiz bowl competition.
Form a team or participate individually.
Study and prepare for the competition.
Participate in the quiz bowl, answering questions on various accounting topics.

Contribute to an Open-Source Accounting Project

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Gain practical experience and contribute to the accounting community by participating in open-source projects.

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Identify open-source accounting projects that align with your interests.
Research the project's documentation and codebase.
Identify areas where you can contribute or improve the project.
Fork the repository and make your changes.
Submit a pull request with your contributions and provide clear documentation.

Career center

Learners who complete Liabilities and Equity in Accounting will develop knowledge and skills that may be useful to these careers:

Bookkeeper

Bookkeepers are responsible for recording and maintaining the financial transactions of a business. The course's focus on the liabilities and equity in accounting, a day to day focus of bookkeepers, makes it a perfect entry point into the field.

See salaries and explore the career path for Bookkeeper

Payroll Manager

Payroll managers are responsible for managing the payroll process for a company.

See salaries and explore the career path for Payroll Manager

Auditor

Auditors examine and evaluate the financial records of an organization to ensure accuracy and compliance with accounting standards. This course will give Auditors a proper foundation in the liabilities and equity side of accounting, which is crucial to performing their daily tasks.

See salaries and explore the career path for Auditor

Accountant

Accountants must study the liabilities and equity of an organization to perform their day to day tasks. This course is a valuable tool for individuals looking to enter accounting. Accountants examine and analyze financial information, prepare tax returns, manage budgets, and audit financial statements.

See salaries and explore the career path for Accountant

Loan Officer

Loan officers evaluate loan applications and make decisions on whether or not to approve loans. This course may be useful for people interested in working as loan officers.

See salaries and explore the career path for Loan Officer

Management Consultant

Management consultants provide advice to businesses on how to improve their operations. This course may be useful for people interested in working as management consultants.

See salaries and explore the career path for Management Consultant

Operations Manager

Operations managers oversee the day-to-day operations of a business. This course may be useful for people interested in working as operations managers.

See salaries and explore the career path for Operations Manager

Risk Manager

Risk managers identify and assess risks that could affect an organization. This course may be useful for people interested in working as risk managers.

See salaries and explore the career path for Risk Manager

Tax Accountant

Tax accountants prepare and file tax returns for individuals and businesses. This course may be useful for people interested in working as tax accountants.

See salaries and explore the career path for Tax Accountant

Treasury Manager

Treasury managers oversee the financial resources of an organization. This course may be useful for people interested in working as treasury managers.

See salaries and explore the career path for Treasury Manager

Underwriter

Underwriters evaluate and assess the risk of insurance policies. This course may be useful for people interested in working as underwriters.

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Venture Capitalist

Venture capitalists provide funding to new and growing businesses. This course may be useful for people interested in working as venture capitalists.

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Financial Analyst

Financial analysts use their knowledge of accounting to evaluate the financial performance of companies and make investment recommendations. This course may be useful for people interested in working as financial analysts.

See salaries and explore the career path for Financial Analyst

Financial Manager

Financial managers oversee the financial planning and operations of an organization. This course may be useful for people interested in working as financial managers.

See salaries and explore the career path for Financial Manager

Investment Banker

Investment bankers provide financial advice to companies and governments. This course may be useful for people interested in working as investment bankers.

See salaries and explore the career path for Investment Banker

Reading list

We've selected nine books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Liabilities and Equity in Accounting.

Wiley's Level II CFA Program 11th Hour Final Review...

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This annual publication provides a comprehensive guide to the latest Generally Accepted Accounting Principles (GAAP). It can be used as a quick reference for accounting professionals and learners who need to stay up-to-date with accounting standards.

Liabilities and Equity in Accounting

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What's inside

Syllabus

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Reviews summary

Foundational accounting: liabilities and equity

Activities

Career center

Reading list

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