ACG-2021 Lecture Notes - Lecture 3: The Ledger, Accounting Equation, Trial Balance

61 views3 pages
2 Oct 2017
Chapter 3
(The Accounting Information System)
-system of Collecting and processing transaction data and communicating
financial information to decision makers.
Assets liabilities, or stockholders equity items change as a result of some
economic event. Assets= Liabilities+ Stock
Holders equity
Dual Effect: Accounting equation will always balance every transaction effects 2
Debit: “Left”
Credit: “Right”
An account can be illustrated in a T- Account Form; which includes Account
name debit and credit.
Double entry System: Each transaction must have 2 or more accounts to keep
basic equation in balance.
(Debits must equal credits)
If debits are greater then credits, the account will have a debit balance.
If credits are greater then debits then the account will have a credit balance.
Assets: increase Debits
Liabilities: increase Credits
Stock holders Equity: increase credits
Dividends: decrease with credits
Cedit: revenue
Debit: expenses
find more resources at
find more resources at
Unlock document

This preview shows page 1 of the document.
Unlock all 3 pages and 3 million more documents.

Already have an account? Log in

Get OneClass Notes+

Unlimited access to class notes and textbook notes.

YearlyBest Value
75% OFF
$8 USD/m
$30 USD/m
You will be charged $96 USD upfront and auto renewed at the end of each cycle. You may cancel anytime under Payment Settings. For more information, see our Terms and Privacy.
Payments are encrypted using 256-bit SSL. Powered by Stripe.