ACC 100 Study Guide - Midterm Guide: Accounts Payable, Retained Earnings, Accounting Equation

• School: Ryerson University
• Department: Accounting
• Course: ACC 100
• Professor: Else Grech

Document Summary

A set structure to analyze business activities helps you to think about each activity critically. Business activities that involve an exchange between the business and an outside party, which are represented by the critical questions and clarified by the enhancing questions, must always be recorded in the accounting system of the business. The questions help you to recognize when there is a transaction (must be recorded) and an event (not recorded). You start a consulting business on may 1, 20xx and had the below noted transactions during the month. Analyze the transactions using the critical and enhancing questions and record the business activities using the expanded accounting equation and account names. The chart is provided on the next page: the owner invests ,500 of cash into a business, borrowed ,500 from your parents. The loan must be repaid by july 1, 20xx: registered a business name with service ontario, , using a credit card.