ACCT 2000 Study Guide - Final Guide: Accounts Payable, Journal Of Forestry, Motor Industry Software Reliability Association
Document Summary
Chapter 1- accounting terminology, forms of businesses, business activities, financial. Issuing/ sharing of stock: people that owe to- creditors liabilities, common stock. Inventory* accounts receivable: expense, financial statements, balance sheet- to present a picture at a point in time. Chapter 2- classified balance sheet: classified balance sheet, everything is listed in liquidity. Chapter 3- transaction analysis, debit and credit procedures: transaction analysis- identifying the specific effects of economic events on the accounting equation, assets= liabilites + stockholders" equity, the accounting equation must always have a balance. Each transaction has a dual effect on the equation. For example, if an individual asset is increased there must be a corresponding: decreased in another asset, or. Rent, insurance, supplies, deprication, unearned revenues: unearned revenues: cash received and recorded as liabilities before revenue is earned, accruals: increase both a balance sheet and income statement account.
