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[ACCT 3001] - Midterm Exam Guide - Ultimate 17 pages long Study Guide!


Department
Accounting
Course Code
ACCT 3001
Professor
lydialafleur
Study Guide
Midterm

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LSU
ACCT 3001
MIDTERM EXAM
STUDY GUIDE

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CH 3 THE ACCOUNTING INFORMATION SYSTEM
1
An Accounting Information System (AIS)
- collects and processes transaction data and disseminates the information to interested
parties.
Basic Terminology (see Textbook for definitions)
- Event
- Transaction
- Account
- Real Account
- Nominal Account
- Ledger
- Journal
- Posting
- Trial Balance
- Adjusting Entries
- Financial Statements
- Closing Entries
Debits and Credits
- An Account shows the effect of transactions on a given asset, liability, equity, revenue, or
expense account.
- Double-entry accounting system (two-sided effect).
- Recording done by debiting at least one account and crediting another.
- DEBITS must equal CREDITS.
Assets = Liailities + “tokholdes Euit
“tokholdes Euit = (Capital Stock + Retained Earnings)
- Balance sheet
Retained Earnings = beginning retained earnings + net income (revenues expenses) dividends
- Statement of retained earnings
Net income = revenues expenses
- Income statement
- Close ‘ED aouts, eeues, epeses, ad diideds
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CH 3 THE ACCOUNTING INFORMATION SYSTEM
2
AED LRC
Assets (+)
Expenses (+)
Dividends (+)
Assets (-)
Expenses (-)
Dividends (-)
Liabilities (-)
Retained Earnings (-)
Revenue (-)
Capital Stock (-)
Liabilities (+)
Retained Earnings (+)
Revenue (+)
Capital Stock (+)
After eating dinner, lets read comics (AED=LRC)
Financial Statements and Ownership Structure
Income Statement:
Revenues
Expenses
Net Income (Loss)
Retained Earnings Statement (for corporations) *:
Beginning Retained Earnings
+ Net Income
-Dividends
Ending Retained Earnings
*Ma e iluded ithi a “tateet of “tokholdes Euit hih shos the hages i all
Equity accounts
Balance Sheet:
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