MGAB01H3 Chapter 3.1: Chapter 3.1

• School: UTSC
• Department: Financial Accounting
• Course: MGAB01H3
• Professor: Liang Chen

Document Summary

The system of collecting and processing transaction data and communicating financial information to decision-makers is known as the accounting information system. Some factors that shape these systems are the type of business and its transactions, the size of the company, the amount of data, and the information that management and others need. :l accounting transaction occurs when assets, liabilities, and shz kz. An important aspect that should be noted is that accounting has to affect at least two or more accounts. Transactions that affect three or more are called compound entries. An account is an individual accounting record of increases and decreases in a specific asset, liability, or shareholders equity item. An account has three parts: the title of the account, debit side, a credit side.