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After befriending a drunken millionaire, Charlie Chaplin is surprised when the man doesn't recognize him the next day. In the evening, as the millionaire begins drinking again, Charlie is greeted as a pal. This episode from City Lights was used in the text to illustrate:
Journal Entries
Records of financial transactions in the accounting system, documenting the details of transactions and their impact on the accounts.
Debits
A transaction recorded in accounts that causes assets to grow or liabilities to shrink on a firm's balance sheet.
Credits
Accounting entries that increase liability or equity accounts, or decrease asset or expense accounts.
Liabilities
Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of assets, provision of services, or other means.
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