ACC 331 Study Guide - Quiz Guide: Accounting Equation, Cash Register, General Ledger
12 Sep 2018
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Acc 331 chapter 2 questions for review of key topics: explain the di erence between external events and internal events. Give an example of each type of event. External events involve an exchange between the company and another entity. Examples include purchasing merchandise inventory for cash or borrowing cash from a bank. These are external events because the company is directly dealing with another party outside of their realm. Internal events directly a ect the nancial position of the company but do not involve exchanges with another party. An example of an internal event would be the use of supplies. Explain what is meant by this dual e ect. A dual e ect means that the economic event will impact both sides of the accounting equation. The accounting equation states that assets = liabilities + shareholder"s equity. A journal provides a chronological record of all economic events a ecting a rm.
