After graduating from the secondary school and before coming to Michigan, I bought a textbook about accounting. However, since it was free time and I did not want to study, I did not really start reading the book. So, I started reading the book this week.
Since I need to write about a hands-on experience that will allow me to learn about accounting for this blog post, I tried to look for basic skills of accounting. One of the basic skills of accounting is writing balance sheets.
As a result, I started solving balance sheet questions and created balance sheets with the data given in the textbook. I actually had hard time understanding the theory and method of writing balance sheet by just reading the textbook. However, when I started writing out the balance sheets by myself, I soon realized how things worked. For example, the total liabilities and the total equity should equal. It was surprising at the first time how it comes out to be same and I was curious if same thing happens with the balance sheets of huge companies where the values are large.
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