Terrijo

Double Entry: What It Means and How It’s Used in Accounting.

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What is Double Entry Accounting and How is it Used? What are the 3 books of accounts? The three books of accounts are the general ledger, the accounts receivable ledger, and the accounts payable ledger. Is asset a debit or credit? According to the double entry accounting system, every transaction has two aspects which are … Read more

Passive Activity.

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A passive activity is an activity that generates income but does not involve active participation from the person earning the income. Passive activities include renting property, investing in a business, or earning royalties from a book or patent. The IRS classifies passive activities into two categories: trade or business activities, and investments. Trade or business … Read more