Management and Organizational Studies 1023A/B Lecture Notes - Lecture 3: Trial Balance, General Journal, Double-Entry Bookkeeping System

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

Document Summary

Accounting information system: the system of collecting and processing transaction data and communicating financial information. Can vary wisely based on factors such as: type of business and its transactions, size of company, amount of data. Transactions are 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 shareholders" equity, has it changed the economic value of an organization, revenue, expense, equity, liability, asset. Debits and credits: describe where entries are made in the accounts, debit (dr, credit (cr) If debit accounts exceed credit amounts, account has a debit balance. Account: an individual accounting record of increases and decreases in a specific asset, liability, or shareholders" equity item, the title of the account, a left or debit side, a right or credit side. Assets increase on the debit side and decrease on the credit side.