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Assets are rights

With gratitude to Paul Jennings for this clever idea. Some students find it difficult to appreciate that assets are rights, not things in and of themselves. I used to tell students that in the old days we put motor vehicles on balance sheets but they kept falling off. It didn’t…Read more

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Two towers of wooden blocks — one with blocks missing and the other solid and well built.

DEAD CLIC: it’s time to kill it off

Mnemonics may have their place but “DEAD CLIC” isn’t one to keep. Let’s kill it off. A friend told me that when she was learning accounting she dared to ask “Why do debits increase both expenses and assets?” This didn’t seem to make sense to her because a debiting effect…Read more

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