Management and Organizational Studies 1023A/B Lecture 3: MOS lecture notes 3

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Maria Ferraro

Document Summary

The system of collecting and processing transaction data and communicating financial information. Can vary widely on: type of business and transactions, size of company, amount of data, information requirements. Transactions economic events that must be recorded in the financial statements not all events are recorded and reported as accounting transactions: Only those that change assets, liabilities or shareholder"s equity from an economic event. Assets = liabilities + shareholder"s equity (this must always be in balance left side goes up so right side does as well) If debit amounts exceed credit amounts, account has a debit balance. If credit amounts exceed debit amounts, account has a credit balance. Debit refers to the left and credit to the right side of the t-account (balances each other) Entering an amount on the left side of an account is called debiting the account, and making an entry on the right is called crediting the account.