ACCT 2100 Study Guide - Trial Balance, Deferral, General Ledger
Document Summary
Transaction an event that affects the accounting equation and can be reliably measured two types: external occurs between the corporate unit and an external party. Internal an external party is not involved. Examples: using office supplies during the month, raw materials used in producing a product. Interest cost incurred, but not paid, on bank loan: review of the accounting equation: Contributed capital + ending retained earnings: more definitions: Beginning retained earnings + net income dividends. Economic resources that provide future benefits for the corporation. Accounts receivable---amounts owed to the corporation by its customers. Inventory---finished products intended to be sold to customers. Prepaid expenses---unused assets paid for and expected to be used up within 12 months. Dollar amount of assets received from (and owed to) creditors. Examples: accounts payable---owed to suppliers of inventory and services, notes payable---loans from banks, accrued liabilities---when an expense is incurred on an item not yet paid for, e. g. , interest on bank loan.
