Passed my Series 63 Exam

Just letting you all know that I passed my exam yesterday!



Series 63

Who Is An "Investment Adviser"?

Investment Advisers can defined as a person that:

Gets paid for their advice or consultation.

Advises others regarding the value or suitability of various investments. This can be done directly or through media such as newsletters. OR

Creates analysis or reports that offer recommendations or advice. OR

Provide advice to others performing financial planning and advisory services.


Exemptions - Investment advisers that do not need to register with the state. These advisers have clients in the state that are non-public. The clients may solely consist of:

Federal Covered Advisers

Broker-Dealers

Banks and other similar depository institutions

Insurance Companies

Investment Companies

Government Agencies

Some others
The key to this is that the clients are not the general public, so protection is not needed.

There is also an exemption known as the "De Minimis" Exemption in which advisers with fewer than 6 clients in a state are exempt from registering. This is because there are so few clients that the business in the state is considered minimal.


Exclusions from the "investment adviser" definition:

Employees of investment advisers (because they register instead as Investment Adviser Representatives)

Banks and other similar depository institutions

Media, so long as they do not provide any specific advice for a specific client in a specific situation

Professionals such as lawyers, accountants, teachers, etc.

Broker-Dealers, as long as they aren't getting kick-backs, special perks or compensation

Federal Covered Advisers (because they are registered as the federal level, so they do not need to register at the state level)


The information listed above is adapted from a number of sources, but mostly from a Series 63 study program from http://www.passperfect.com/ Please visit PassPerfect for more information about their program. The Series 63 exam has been developed by the NASAA, and you can visit their website HERE. Neither PassPerfect nor the NASAA have reviewed the material presented here for completeness or accuracy. Please visit them to find more information about their programs and exams.



Investment Adviser, Series 63, Exceptions, Exemptions

Legal / Financial Definition of a "Person"

I am currently studying for the Series 63 exam. One of the things that you need to understand in preparing for the exam is the definition of a "person". Under the NSMIA (National Securities Markets Improvement Act), a Person is a legal entity with a broad scope. Any of the following can be considered a person under the act:

Individuals

Corporations

Business Trusts

Partnerships

Associations

Trusts

Joint Stock Companies and Joint Ventures

Governments and Political Subdivisions

Unincorporated Organizations

Other Entities
Only "persons" may be allowed to issue securities or trade securities.

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Not included in the exam study materials, but possibly of interest, the following are not defined as "Persons":

Cats

Robots

Action Figures

Chairs

Other Inanimate Objects




Person, Series 63, National Securities Markets Improvement Act, NSMIA

Blue Sky Laws

State registration laws, also known as "Blue Sky" laws, are enacted by each state in order to protect their citizenry from fraud. These laws, many of which predate the Federal Securities Acts in 1933 and 1934, require brokers, brokerage firms, investment advisers, and securities offerings be registered in the state in which they operate.

The term "Blue Sky" refers to the nothingness that composes the great blue yonder. It comes from a phrase used in a Supreme Court case Hall vs. Geiger-Jones Co. from 1917. The laws are intended to prevent the fraudulent sale of "Blue Sky" to investors and allow for states to enforce those laws. However, the ability of states to regulate and enforce some securities laws has been limited due to the enactment of the National Securities Markets Improvement Act of 1996. There are some securities that are considered covered and exempt from Blue Sky laws, including those securities listed on the NYSE, AMEX, and NASDAQ, and also many mutual fund shares.

For more information about Blue Sky Laws, be sure to visit these sites:
http://www.sec.gov/answers/bluesky.htm
http://www.seclaw.com/bluesky.htm
http://www.blueskylinks.com/



Blue Sky Laws, State Law, Securities

Futures: A Beginning

I have been meaning to talk about Futures Contracts for quite some time. I'm not going to go into any depth right this moment, so let this post act as an entry point and introduction to Futures derivatives.
Forward Contracts are a legal agreement between parties calling for the future delivery of an asset at a pre-arranged negotiated price. Futures Contracts are a standardized form of forward contracts that are able to be traded in a market. By having a standard contact, futures can be easily liquidated without the need for personal negotiation.

Futures contracts are made between two traders. One trader with a long position is contracted to to pay an agreed price at a specific time, while the other trader with a short position commits to delivering the asset. This contract is often used to hedge against risk of price fluctuation or for speculation. The contracts are typically made on goods in five categories: agricultural commodities, metals and minerals, energy, foreign currencies, and financial futures.

There is a wealth of knowledge about futures out there that I encourage you to research for yourself. I will try to return to the topic of Futures again in the future.



Futures, Contracts, Derivatives

SIPC - Securities Investor Protection Corporation

In my current job as a Services Associate, I have recently been fielding a lot of calls by investors asking if their mutual funds are FDIC insured. The FDIC only protects deposits in bank accounts, not securities. While these funds are not protected under the FDIC, I am able to tell them about another protection that is out there known as SIPC protection. Since this seems to be a popular topic, I'd like to touch on it here.

The SIPC, which is short for the Securities Investor Protection Corporation, is an organization formed by the 1970 Securities Investor Protection Act. It is an organization designed to protect investors in the event of a brokerage firm failure. The SIPC will provide for the orderly dispersal of existing cash and securities from the firm to the investors. In the event that the firm does not have those assets, the SIPC insures up to $500,000 in equities, including up to $100,000 in cash accounts.

However, the SIPC only protects investors from the brokerage firm holding those securities. It does not protect investors from falling prices of those securities. All investments carry risk, and the SIPC does not insure you against the possibility that a security could decline in value. Also, not all assets are protected: Most mutual funds and equities are protected, but annuties and some other investments may not be protected. That is something that investors may want to consider before making any financial decisions.

If you would like to learn more about the SIPC, you can visit them HERE.

Thanks for visiting!



SIPC, Protection, Securities Investor Protection Corporation, Investment

403 (b)(7) Plans

Here is a quick review about some facts about 403(b)(7) retirement plans. All information should be accurate as of today's date Oct. 6, 2008.

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This retirement plan is used for government, charity, and non-profit organizations. In this plan, pre-tax contributions are made by employees and any employer contributions are tax deductible.
Contribution Limits For Employers: 100% of participant's compensation or $46,000 and the Exclusion Allowance
Contribution Limits For Employees: $15,500
Catch up Contributions for Employees with > 15 years of Service:

$5,000

$15,000 minus amounts previously excluded from gross income under the "catch up provision"

$5,000 X Years Working For Employer - Elective Deferrals

Age Limits: Must take RMD by April 1st of achieving age 70.5 or after retirement, whichever is longer.
Qualified Exceptions for Pre-Mature Distribution include: Death, disability, life expectancy formula, separation from service after age 55, hardship, court order, and medical bills greater that 7.5% of Adjusted Gross Income.
Loans are allowed on 403(b) plans.




Retirement Plan,403b

Uncertainty and Spending

This week the U.S. Commerce Dept. reported a 4.8% drop in durable goods orders, the worst since September 2001. There is an interesting paragraph in an article I found from Professor J. Bradford DeLong of the University of California at Berkeley. I suggest reading it and asking yourself if you see any parallels with where we could be heading in the near future:

"The stock market crash of 1929 greatly added to economic uncertainty: no one at the time knew what its consequences were going to be. The natural thing to do when something that you do not understand has happened is to pause and wait until the situation becomes clearer. Thus firms cut back their own plans for further purchase of producer durable goods. Consumers cut back purchases of consumer durables. The increase in uncertainty caused by the stock market crash amplified the magnitude of the initial recession."

Just something to think about.



Uncertainty, Spending

En Passant: Group Cohesion

Just a small tip today: Try doing something to pull your group together. Teams often work better when a group feels a sense of belonging. You've got their back, they've got yours. If you all dressed in "team colors" for a day, all wore a goofy hat, or all shouted something together - you may find that your team will work better together. Even if the group all hates the goofy hat, at least it will provide them with a point of common conversation to give them something to talk about with each other.



Group Work, Teamwork

A Quick Take On Short Selling

What is it? Who does it? Why do they do it?

Short sellers hold margin accounts. These accounts have money in them which is used like collateral during trades. Short selling gives a trader the ability to borrow stock on margin, sell the borrowed stock at a high price, purchase it back at a low price, and pocket the difference in value. The lender of the stock, often a bank or broker, can receive interest from the collateral money in the margin account backing the trader.

Naked short selling is the practice of selling stock at a high price without borrowing it, repurchasing the "stock" at a lower value before the delivery date, and the pocketing the difference in value.

The difference between these are that the Naked short sellers never have any security, borrowed or otherwise, behind their trades. They only have the promise to deliver the security if they do no repurchase it.

Short sellers can provide liquidity in a market by providing a ready market. They will purchase stocks when others are selling and they will sell their shares when others are buying. When short selling is banned, it may be more difficult and costly for a buyer or seller to find a counterpart willing to take that position.

The short sellers can cause the current market price for a stock to go down because of their sales. When a lot of short sellers are in the market around a particular security, they can influence the actions of traditional investors and other traders. These investors don't know why the price of their stocks are going down, only that the price is dropping. This can entice some investors to sell their actual stock.

Short sellers can often make money by betting that the markets are going down, but they will lose money if they guess wrong and the markets go up.

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I'd like to thank my friend Paul Pace for giving me this topic idea for my blog post.

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Short Selling, Financial Term, Liquidity, Margin

En Passant: Scaring The Average Investor

I think the average investor must be getting spooked from this market. Over the last month the stock market has had huge up and down days. Oil is back up again. Every weekend it seems that there are major changes to financial system. Every headline scares them a little more because they don't understand it. Is it any wonder that some investors are considering hiding their money under their mattresses? That's a wealth accumulation model they can understand and don't need a financial adviser to explain to them. I suspect that this immediate flight to "safety" will continue until Wall Street can go a few weekends without being in the headlines.



Flight To Safety, Money Under Mattresses Markets, En Passant

A Clean, Pressed Suit

Do you have a clean, pressed suit ready to go at a moments notice? I know this may seem like an obvious point, but I wanted to mention it for those that may not have thought about it. I know that dry cleaning can be an expensive hassle, especially if the dry cleaners is on the other side of town. However, if an event (like a surprise job interview) comes up where you need to stand out and look your best, it may be a good idea to have at least one good set of clothes ready to go. Look through your closet now to find that suit that will make you look your best, and make sure its looking its best. Plan for tomorrow, not just today.



Suit, Career Development, Dry Cleaning

Passed The Series 6 Exam!

Yay!

Series 6

Wash Sale Rule

The wash sale rule isn't a set of washing directions for new clothes. Its a rule that is intended to cut down on the number of people that use stock sales to take artificial losses for tax purposes. The rule is that an investor cannot claim a loss if a stock was sold and another nearly identical stock was purchased within 30 days, before or after the sale. In order to claim a loss with the IRS, if you have a loss on a position, you are unable to sell your shares for a loss and jump right back in and buy more.
An important note also is that your cost basis is adjusted with the wash sale, not reset to the new purchase price. Your "disallowed" loss is going to be added to the cost basis of the new replacement shares. If you have a loss of $50 per share and you purchased a new share at $30 a share, than your new cost basis will be $80.

Wash sales are important to consider before selling stock with the intention of a later repurchase.




Wash Sale, Financial Term, Cost Basis

En Passant: 12b-1 Fees

Here is a quick review of 12b-1 fees from my Series 6 studying. The 12b-1 Fees on a mutual fund are used to cover some costs faced by the underwriter distributing the mutual fund. These fees are assessed once a year and may include:
1) Advertising
2) Underwriting Compensation
3) Dealer & Sales Personnel Compensation
4) Printing and Mailing Prospectuses
5) Printing and Mailing Sales Literatiure
The 12b-1 fees can be approved by the majority of shareholders, directors, and disinterested directors. The fees only need majority approval by the majority of shareholders and the disinterested directors to be stopped. These fees are intended only to cover marketing and advertising costs.

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Okay, that's it for today. Good luck in the markets.



En Passant, 12b-1, Series 6, Mutual Fund

En Passant: Out Of The Cubicle

Sometimes fresh air and sunlight can provide you with a new perspective on a problem or issue at work. You may want to leave the cubicle during your next lunch break. For that matter, try leaving the building. Go for a walk around the block. You might find that the answer will come to you more easily when you stop pushing against your mental block.



En Passant, Cubicle, New Perspective, Problem Solving

En Passant: Student Loans

I realized the impact of the credit crunch today when I started looking into student loan consolidation. When I went looking for one, I found very few banks that were willing to offer those loans. I went to a loan comparison site, and they said that none of the providers that they tracked offered loans anymore. I found Wells Fargo actually still offers it, but it's at higher rates than my current rates. I'm not sure that consolidation is the right choice for me now. At least the loans were available while I was in school. I've heard that loans have gotten much more difficult for students this semester. Here's one example.





En Passant, Student Loans, Credit Crunch

Municipal Bond Characteristics

As part of my Series 6 studies, I've found the need to review the characteristics of the municipal bond. I thought that this could be an area where others could benefit from this quick review as well.

Municipal bonds are debt securities issued by state and local governments to finance public projects by local governments to finance public projects such as construction. They can be classified as either GO Bonds or as Revenue Bonds.

GO Bonds, also known as General Obligation Bonds, are considered low risk because the bond is backed by the taxing power of the government. Revenue Bonds are issued to finance projects that will generate income which will be used to re-pay the bonds. Revenue bonds are considered riskier because there are no taxes backing payment. If a project is unable to generate sufficient revenue, then the bonds can go into default.

The primary advantage to having municipal bonds is their tax status. Interest income earned on these bonds are generally tax free at the federal level. For investors that live within the state or municipality issuing the bond, the interest income is also potentially tax free at the local level. This is partially because municipalities would like to give an incentive to the citizens to support local government construction and infrastructure efforts. These tax advantages can be especially interesting for those in a high tax bracket because the earnings generated may be tax free.

There is a special kind of revenue bond that deserves a little more description because it does not have this tax advantage. Industrial Development Bonds can be issued to finance projects that will be leased to an outside company. The lease payments are used to re-pay the bond. Since the facilities are used by private industry, interest income on these bonds is taxable by the federal government.

Hopefully this review about municipal bond characteristics has been useful. If this topic interests you, feel free to drop me a comment. Thanks.



Munis, Bonds, Revenue Bonds, GO Bonds

En Passant: Dollar Cost Averaging

While in the course of studying for the Series 6 Licensing Exam, I've come across a term that I was not sure if I have covered in in any of my previous posts. I thought it should be something that I should touch on. The markets can be a rough and tumble place for your money; sometimes the volatility can be quite high. With "Dollar Cost Averaging" an investor can invest a set dollar amount at a set interval, usually monthly. This method of investing slowly and systematically eliminates much of the timing risk an investors faces. Without needing to worry as much about getting into the market at the top or the bottom, an investor can focus more on where an investment will go in the longer term and less about where it will be tomorrow.




Dollar Cost Averaging, En Passant, Financial Terms

Tying Up Loose Threads

Until I have the time to finish my Basic Accounting Review Guide series that I started last winter, I felt that I should provide you with a few links to some other useful accounting sites. All of these sites should help you learn a little more about the art of accounting:

http://www.understand-accounting.net/Accounting-blog.html
http://www.quickmba.com/accounting/
http://www.nysscpa.org/prof_library/guide.htm
http://www.theeyeshade.com/
http://myabacus.wordpress.com/

There are many, many more useful accounting blogs and sites that can be found on this list here: http://www.mbaexplorer.com/blog/2008/08/the-numbers-top-50-accounting-blogs/

Time permitting, I will eventually get back to my Accounting Review Guide. However in the meantime, hopefully you will find some good information on those sites.



Accounting, Links

En Passant: To Get Busy Or Not To Get Busy?

As you can tell by the infrequency of my recent posts, I have been unable to find the time to make regular lengthy posts. I have decided that I would like to post more often, even if the depth of my content isn't as complete as I might like. My goal will to post at least 5 sentences per post, with one post published every weekday. And now, on with the show...
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When you have more things to do than you have time to do them, you have to focus and prioritize. Myself, I am currently focusing on studying for my upcoming Series 6 license exam, improving my fitness level, and spending more time with my girlfriend. Your priorities will change over time. Every few weeks it is necessary to review your priorities to ensure that you are being as effective as possible.

Have you reviewed your priorities lately? Consider how focusing your energy on just a few big ticket items could improve your life.




Priorities, En Passant, Focus, Review

Video Produced For Temple University CSPD

Sorry I haven't posted in a while. There have been other priorities that have been more pressing.
Anyway, I recently finished filming a brief video for the Center for Student Professional Development at Temple University. Here it is:  https://www.youtube.com/watch?v=9JrO92hM6Uo




CSPD, Temple University, Trevor Stasik, Professional Development

Thank You

Hello again. I am so glad that you have decided to join me today for another blog entry. Before I return my blog to discussing items of a financial nature, I would like to use this entry to thank some of the people that helped me through Temple University, my job hunting process, and getting my new job at Delaware Investments.

Mary Stasik - Before my mother passed, she drilled into me the importance of studying hard
Ernest Stasik - Supported all of my decisions and pushed me to work even harder
Christina Mahon - Kept me sane and tidy during my 3am study sessions. You were there for everything.
Vince Stasik - Thanks for being a supportive brother
Tina Duffy - Thanks for being a supportive sister
Pat Duffy - Reminded me to take breaks, even when time was limited
Uncle Francie - True believer!
Erica Nemeth - Listened as I talked about my plans
Megan Rimer - Showed me support, helped me with interviews, and gave me the confidence to succeed
Jena Bandini - Taught me the value of a well timed, handwritten thank-you note
Janis Moore Campbell - Your honest and forceful deconstruction of my early resume and interview techniques helped me grow stronger
James (Jim) McLaughlin - Helped me find new opportunities.
Clay Stewart - Believed in me no matter what!
Jim Stevens - Taught me the value of form, method, structure, and organization
Olga Hendzelyuk - Trusted me when I took the initiative on new projects with the Financial Management Association
Professor Stephen Kamp - Never stopped challenging me to meet the highest of expectations he set for the Financial Management Association
Professor Norman Roessler - Taught me about "Memento," "Holy Mountain," culture, tolerance, friendship, and new perspectives
Professor Siegel - Gave me numerous opportunities to hone my business strategy presentation skills on unique case studies. “Don’t forget about Porter’s Five Forces!”
Lucas Pfaff, Tzuo (Joe) Wang, Ben Iliopoulos - When facing overwhelming project requirements and unrealistic deadlines, you are the ones that had my back
Paul Pace - For reminding me where I've been before
Chris Callanan - Thanks for the interview and giving me a chance to prove myself
Lindwood Wilmer - Thanks for the interview and giving me the chance to prove myself
Tim Scanlan - Thanks for the interview and giving me a chance to prove myself
Tim Douglass - Thanks for the interview and giving me a chance to prove myself
Sam Tropio - Thanks for welcoming me to Delaware Investments and taking me under your wing
Stephen R. Covey - His book “7 Habits For Highly Effective People” has been such a help that I wanted to thank him
Steve Pavlina - The insights you wrote about in your blog at http://www.stevepavlina.com/ regarding time management and productivity helped me juggle numerous responsibilities while I was at school.


If your name was not included, it was not intentional. I could spend hours writing a list of thank yous. There have been so many people that have helped me along the way. I thank you all.

With my next blog entry, I will return to the topics of money, accounting, and finance.

Sincerely,
Trevor Stasik




Thank You, Temple University, Delaware Investments

Wisdom Gained From The Job Search

Hello, it’s been a long while. I know that I have been neglecting my blog of late but I have a good excuse. I have been focusing my energy on the new job. However, since I have been spending all this time now in gainful employment, I should at least provide you with some of the job search wisdom I gained during the last 6 months.

PERSISTENCE: I think that the most challenging thing about the search was the rejection by prospective employers. During my search, I had to tackle over 300 applications and 70 interviews before finally connecting with my new job. The saying goes, "if at first you don't succeed, try again." the saying should be modified to "if at first you don't succeed, try again SMARTER." Continue to push forward, but learn, evolve and adapt. Try new techniques and methods to achieving your goals.

MARKETING YOURSELF: Have you ever bought something after seeing a really interesting advertisement in the newspaper? Have you ever bought an item based on the recommendation of a friend? You should consider the job search process as an exercise in self-marketing. Your resume, blog, voicemail, job application, and even your personal relationships act as advertising for you. Be tactful and professional, but assertive in getting your name out there. Other people need to know that you are an available, quality solution to their staffing needs before they will consider you for a position.

INTERVIEW PREPARATION: With each interview that I did, the better I got at preparing before the interview. Prior to an interview, you should make a list of possible questions that you may be asked. Then, using the STAR method, write out the answers to those questions. If you are asking yourself, "what's the STAR method," don't feel bad. When I went on my first interviews I didn't either. STAR is a way of answering questions in a way that reveals you as the talented person you know that you are. STAR, as taught to me by Janis Campbell, stands for situation, task, action, result. Answer the interviewer's questions by first describing the situation in one or two sentences, providing the time, place, and your job. The task should follow next, describing the challenge you faced. Action is the most important step. The action step describes in summarized detail the process and activities you did to solve the problem. (Note: talk about what you did, not what the group did) The final step is the results section. In this section you must provide specific facts and figures about the impact of your contributions.

THANK-YOU NOTES: Handwritten thank-you notes go a long way in the hiring process. E-mail is more convenient, but that is why it fails to show your genuine appreciation. Thank-you notes can show a recruiter that you care.

Conclusion:
Ultimately, these are just a few of the things that I learned about during my job search. It can be a challenge, but new paths and ideas can be found. Time permitting, I will return to this subject again in the future. I wish you all the best of luck in your endeavors.

Please drop me a comment sometime.
- Sincerely, Trevor Stasik






Job Search, Persistence, Interview

I Officially Have A Job

Great news! I was offered a position at Delaware Investments and I have accepted the job. I start June 2nd. I will give you more information sometime in the next week. -----Sincerely, Trevor.



Career Development, Delaware Investments, Good News

Journalizing

One of the most important steps in the accounting process is Journalizing. The Journal is where every transaction should originally be recorded. Since ledger entries may go to multiple accounts on various pages or in various files, the journal is essential because it is the one book with nearly every entry in chronological order.

Each entry in the journal will have a date, the list of associated accounts with that entry, and a debit that equals a credit. Here is one such example:

Jan. 4          Inventory                      350 Debit
                     Accounts Payable                            350 Credit
                     (Purchased Widgets on account,
                     payable in 10 days)

Hopefully the html code and formatting looks okay. You should see a Debit in the left column and a credit in the right column. As you can see, there was inventory purchased on credit. There is an increase in an asset and in a liability account, so as to maintain the accounting equation. Also, the debit equals the credit.

This is just a simple example, but it could be extended to more complex situations. The idea here is that all transactions need to be recorded in the journal first, before the ledger. For more examples, take a look at this webpage over at NetMBA. Click HERE.

The next step in the accounting cycle is the Posting process, and we will talk about that next time. Thanks for visiting.
----Sincerely, Trevor Stasik.

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To return to initial post in my Accounting Review Guide, click HERE.

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Journalizing, Accounting, Accounts, Cycle

The Accounting Cycle

There are a cycle of procedures performed, transactions recorded , and statements prepared every accounting period (typically monthly). At the end of the period, the cycle continues around again.

Over the next several entries I will discuss some parts of the accounting cycle in greater detail. In my next blog post, I intend to discuss the process of journalization.
--Sincerely, Trevor Stasik.

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To return to initial post in my Accounting Review Guide, click HERE.

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Accounting Cycle, Journalizing, Accounting, Process

Basic Accounting Equation

Today I will continue with my review of basic accounting. There is an essential equation in accounting which forms the foundation for the entire system. This equation states that the sum of Liabilities and Owners' Equity equals the sum of Assets. This equation is the bridge between accounts and explains why a double-entry accounting system is necessary. For every entry made to a debit, an equal amount must be applied as a credit somewhere else. All Debit columns must be able to be added and have their sums equal the total of the credit columns. Also, if there is a change to an asset account, an equal change must be made to a liability or owners' equity account.

Let me give you two or three examples and hopefully this will become a little more clear for you:

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Owners invest $70,000 in company in exchange for stock.
The $70,000 is added (via debit) to the Assets. At the same time, to maintain the equality in the accounting equation, there is also $70,000 added to the Owners' Equity (via credit).

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Pay $500 in cash to pay wages.

This time there is a decrease in Assets (via credit) and an accompanying decrease (via debit) to the Owners' Equity Account.

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Receive $1,200 cash from customer for services.I think you are starting to get the idea! You had an increase in assets (via debit) when you received the money, and an equal increase in the Owners' Equity (via credit). If take a look, the accounting equation remains true and the debits equal the credits.

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Paid $2,000 cash to a vendor for new equipment.
This time you are merely exchanging one asset for another, so there is no change to the Liabilities or to the Owners' Equity.

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Declare a $6,000 dividend
In this final example, the company has made an obligation for itself which must be recorded. There is a decrease in the Owners' Equity (via debit) and a corresponding increase in the Liabilities (via Credit).

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These are just a few simple examples. There are many, many, many more possible. It is my hope that you will take the time to seek them out for yourself to learn more. Stop back to my blog again soon. Next time I will introduce and discuss the Accounting Cycle.
--------Sincerely, Trevor Stasik

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To return to initial post in my Accounting Review Guide, click HERE.

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Accounting Equation, Assets, Liabilities, Owners Equity, Debit, Credit, Financial