Yeah!

Thanks for sharing your perspective, and yes it really made sense.. I related it to NPO's balance sheet as well, in NPO the specific funds are treated as a liability which they have to use for a certain purpose only.

Not at alll, like this? It's all about four pillars accounting to debit and credit such as--- Income - Credit Liabilities - Credit Asset - Debit Expenses - Debit Hope you find this helpful whenever you are evaluating any transaction in Debit or Credit format. Keep learning and stay positive...

what if you pay with credit card but never pay the credit card?

@@bruverA1 If you owe the bank $100, that is your problem. If you owe the bank $100,000,000. That is the banks problem.

And that's a good point. I can offer some private industry perspective. The majority of businesses are small & mid-sized. Automation is still not always cost-effective at scale, and it's not always easy to implement it in a way that can be maintained. A part of a process may run on toothpicks and bubblegum until that project can be dealt with. It may have controls, but it might literally be an excel equivalent of a T chart at each step. There may be just 2-10 people running the vast majority of the accounting functions. So that includes the financial statements, breakdowns, budgets, G/L, you get the idea. So currently it may require too much time from the controller and their few staff to utilize the consultants they'd be paying to automate something. It's also not cost-effective to automate when the rest of the software will also need (1) workarounds like running spreadsheets for specific processes (2) maintaining (3) possibly re-design critical processes to adjust for new controls. So these projects can be really tough to juggle is what I'm getting at. Because as you know, there's always people relying on accurate&timely information from us, the accountants. Working for a good controller makes the job fun. Specific industries also have to deal with things that will never be designed with accountant sanity in mind. But it's also hard to get around to changing some process that is working _juuuust_ efficiently and accurately enough and leaving a good audit trail. Because there's always something that takes precedence and work capacity is limited. Example: an ACH handles transactions such that it never matches the true -cash- (meant JE) impact, and the software isn't able to fix that or detect that issue because it was not designed for accountants specifically. Just gotta roll with it.

yes

How would you just know that?

@@DanielDuhon because thats something you learn on the first week of ACCT 101

​@@nicholasshook7513Hey, every lesson taught differently.