an Economic Event | A transaction is an economic event that alters the financial position of the entities engaging in it. For example, when a company purchases a machine (or uses the services of another business) either by using its cash or on credit, it
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financial statements include, and how the financial statements are constructed to provide valuable information to stakeholders. You also learn the basic mechanics of accounting. These include journalizing transactions into accounting records using debit and credit rules. You also learn why the general ledger is critical to the accounting process and how transactions are posted to the general ledger. Basic Accounting Principles and Concepts OBJECTIVE: Identify the four basic financial statements
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$2,574 PE 2–6A a. The totals are equal since both the debit and credit entries were journalized and posted for $486. b. The totals are unequal. The debit total is higher by $2,260 ($1,130 + $1,130). c. The totals are unequal. The credit total is higher by $90 ($2,540 – $2,450). PE 2–6B a. The totals are unequal. The credit total is higher by $300 ($1,312 – $1,012). b. The totals are equal since both the debit and credit entries were journalized and posted for $4,500. c. The
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sold/services performed, and cash register tapes. Define debit and credit and name the types of accounts that are (three correct responses): Debit is an account entry placed on the left side of a T-account. Credit is an account entry placed on the right side of a T-account. Increased by a debit. Cash account. Decreased by a debit. Liabilities and stockholder’s equity. Increased by a credit. Service revenue account. Decreased by a credit. Expense account. Question 2: Proficient: Which
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Solving an Ethical Dilemma: 1.Recognize an ethical situation and the ethical issues involved.2.Identify&analyze the principal elements in the situation.3.Identify the alternatives, and weigh the impact of each alternative on various stakeholders. Financing Activities:1.Borrowing money (debt financing)-Amts owed=liabilities.Party to whom amounts are owed are creditors.Notes payable&bonds payable diff. types of liabilities.2.Issuing(selling) shares of stock for cash.-payments to stockholders=dividends
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left or debit side, and (3) a right or credit side. Because the format of an account resembles the letter T, we refer to it as a T account. Debits and Credits The terms debit and credit are directional signals: Debit indicates left, and credit indicates right.They indicate which side of a T account a number will be recorded on. Entering an amount on the left side of an account is called debiting the account. Making an entry on the right side is crediting the account.We commonly abbreviate debit as Dr
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A C C O U N TA N C Y HIGHER SECONDARY – FIRST YEAR Untouchability is a Sin Untouchability is a Crime Untouchability is Inhuman. TAMILNADU TEXTBOOK CORPORATION College Road, Chennai - 600 006. © Government of Tamilnadu First Edition - 2004 PREFACE CHAIRPERSON Dr. (Mrs) R. AMUTHA Reader in Commerce Justice Basheer Ahmed Sayeed College for Women Chennai - 600 018. REVIEWERS Dr. K. GOVINDARAJAN Reader in Commerce Annamalai University Annamalai Nagar - 608002. Dr. M. SHANMUGAM Reader
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A QUICKBOOKS ACCOUNTING PRIMER By Jeanie R. Hoshor, M.S. Accounting Introduction Businesses run on information: information about the purchase of goods and services from their vendors, about the sale of goods and services to their customers, about their inventories of products, about their employees and the services they perform and the wages they earn, about all the things (cash, buildings, equipment, patents, supplies, etc.) they use to carry on their operations and activities. Most of
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SYSTEMS TUTORIAL SOLUTIONS WEEK 3 CHAPTER 3 3. One often hears the statement: ‘Debits are bad and credits are good for the business.’ Do you agree? Why or why not? This statement is nonsense. The debits and credits are merely double-entry rules for recording transactions and events. Even though expenses may be “debit”, so too are assets. “Debit” implies neither good or bad. Likewise for credits, which can be revenues or liabilities or equity. |Exercise 3.4 | |Normal
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transactions in accounting is done by what is called double entry recording. A+E=L+OE+R Debits=credits A=assets E=expenses L=liabilities OE=owner’s equity R=revenue What’s debits and credits? 什么是存储卡和信用卡？ Debits (left-side entries) increase assets and decrease liabilities and equities. Credits (right-side entries) increase liabilities and equities and decrease assets. The debit(DR) and the credit (CR) rules are as follow：P19 Accounting element on which side is an increase recorded?
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