ACC 100 Chapter Notes - Chapter 3: Retained Earnings, Current Liability, Cash Register

• School: Ryerson University
• Department: Accounting
• Course: ACC 100
• Professor: Keith Whelan

Document Summary

Event: a happening of consequence to an entity: internal event interaction within an entity (company, external event interaction between entity and outside environment. Transaction: any event that is recognized in a set of financial statements. If an event is measureable and realized then it"s a transactions. Source documents: evidence needed in an accounting system to record. If an event is realized and measurable then it"s a transactions transactions cheques: eg purchase invoice, cash register tape, payroll records, sales invoice, source documents help prove events turned into transactions. All transactions have a minimum of two accounts. For every transaction the plus and minus must equal 0 or else you"ve made a mistake. Operating is revenue and expenses and current assets and current liabilities.