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 get many laughs. My friend… Continue reading Assets are rights

It’s time to kill D-E-A-D C-L-I-C

Maybe mnemonics have their place, but "D-E-A-D C-L-I-C" isn’t one to keep. Let’s kill it off. A friend of mine told me that when she was learning accounting she dared ask why debits increase both expenses and assets. It didn’t make sense to her because debiting expenses appeared to reduce value in the entity and… Continue reading It’s time to kill D-E-A-D C-L-I-C