ACCT 2000 Lecture Notes - Lecture 6: Cash Register, Accounts Payable, Cash Advance
Document Summary
The accounting information system is a system of: collecting, processing transaction data, and, communicating financial information to decision makers (users). Transactions are economic events that require recording in the financial statements. Assets, liabilities, or stockholders" equity items change as a result of some economic event. There is a dual effect on the accounting equation. ,500: on october 20, sierra paid a dividend, employees have worked two weeks, earning ,000 in salaries (expense), which were paid on october 26. After eating dinner lets read comics; use for image below. The account: also referred to as a t account. Record of increases and decreases in a specific asset, liability, equity, revenue, or expense item. Each transaction must affect two or more accounts to keep the basic accounting equation in balance. Recording done by debiting at least one account and crediting another. If debits are greater than credits, the account will have a debit balance.
