Which Knowledge Avatar?
So what kind of account is it? That is the first question you will ask yourself before recording a transaction. Is this transaction an increase of an asset? Is it an increase of a liability? Is it a decrease of a liability?
In this activity ask Angela (your Ai Assistant) "What kind of account is _____?" Angela will then ask you questions to guide you in understanding what kind of account it is. Note what she is asking you. After you have done several examples you should be able to do it without Angela.
You can try these and check your answers by asking Angela:
- What kind of account is a lease?
- What kind of account is a car purchase?
- What kind of account is money received for a sale?
- What kind of account is a purchase of equipment?
