[RSM219H1] - Final Exam Guide - Comprehensive Notes for the exam (35 pages long!)

• School: UTSG
• Department: Rotman Commerce
• Course: RSM219H1
• Professor: Catherine Barrette

Document Summary

Rsm219 - lecture 3 : double entry accounting and accounting cycle. R/e can be both credit and debit. Could be in debit due to accumulated losses. Dividends is temporary account even though usually a non income statement item. Closed to r/e at end of year. Relates to balance at one point in time. Closing balance of last reporting period = opening balance of next period. Journal entries is how we capture and communicate a transaction. Gives ability to look at any specific account in entirety. Contains at least one debit and one credit. Sum of debit must equal sum of credit. The accounting cycle: prepare the journal entry. Auditors look over information for biases and compliance with regulation. Where most of the thinking/translating is done: post je to t-accounts. Record debit to left side, credit to right side. Transposing information in je stage: trial balance & financial statement. Normally done at end of accounting period.