Business Administration 2257 Chapter Notes - Chapter 3: General Ledger, General Journal, The Ledger

• School: Western University
• Department: Business Administration
• Course: Business Administration 2257
• Professor: J S

Document Summary

Accounting information system: the system of collecting and processing transaction data and communicating financial information to interested parties. Vary based on: type of business, type of business transactions, size of the business, amount of data. O(cid:374)l(cid:455) eve(cid:374)ts that (cid:272)ause (cid:272)ha(cid:374)ges i(cid:374) assets, lia(cid:271)ilities o(cid:396) sha(cid:396)eholde(cid:396)"s e(cid:395)uit(cid:455) a(cid:374)d (cid:396)e(cid:272)o(cid:396)ded: you only include an event if the financial position of the company has changed. The two sides of the accounting equation must remain equal after each transaction. An account is an individual accounting record of increases and decreases in a specific asset, lia(cid:271)ilit(cid:455) o(cid:396) sha(cid:396)eholde(cid:396)s" e(cid:395)uit(cid:455) ite(cid:373) A t-account is the basic form of an account with a debit and credit side showing the effect of transactions on the account. Double-entry accounting systems is a system that records the dual effect of each transaction in appropriate accounts. Recording process: analyze business transactions, journalize the transactions, post to general ledger accounts, prepare a trial balance.