RSM220H1 Lecture : CHAPTER 3 TEXTBOOK REVIEW A 6 page summary of the entire third chapter of the RSM220 textbook (Intermediate Accounting)
16 Oct 2011
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Document Summary
The accounting information system: definition: the system of collecting and processing transaction data and making financial information available to, basic terminology used in collecting accounting data: interested parties entities or parties liabilities, and equity. Events can be external or internal: event: a happening of consequence. An event generally is the source or cause of changes in assets: transaction: a transaction is an external event involving a transfer or exchange between two or more, account: a systematic arrangement that accumulates transactions and other events. A separate account is: permanent and temporary accounts: permanent (real) accounts are asset, liability and equity accounts; they appear on the balance sheet. Temporary (nominal) accounts are revenue, expense, and dividend accounts; except for dividends, they appear on the income statement. Temporary accounts are periodically closed; permanent accounts are left open: ledger: the book (or electronic database) containing the accounts.
