Business Administration 3300K Chapter Notes - Chapter 3: Uptodate, Financial Statement, General Ledger

• School: Western University
• Department: Business Administration
• Course: Business Administration 3300K
• Professor: Prof

Document Summary

The accounting information system is the system of collecting and processing transaction data and communicating financial information decision-makers. Accounting information systems vary widely based on: the type of business and its transactions, the size of the company, the amount of data, the information needed. An accounting transaction occurs when assets, liabilities or shareholders" equity items change as a result of some economic event. Two or more items could be affected when analyzing the accounting equation. An account is an individual accounting record of increases and decreases in a specific asset, liability or shareholders" equity item. In its simplest form, an account consists of 3 parts: the title of the account, a left or debit side, a right or credit side. The alignment of these parts of an account resembles a t and so it is called a t- account. The term debit means left and the term credit means right: commonly abbreviated to dr. and cr.