BUS 214 Chapter Notes - Chapter 2: Trial Balance, Financial Statement, The Ledger
Document Summary
The first 4 steps in the accounting cycle are recognizing transactions, analyzing their impact on the accounting equation, entering those transactions in the books and posting them to the accounts. A transaction is any event that has a financial impact on the business and can be. Provides objective information about the financial impact on any exchange on an entity measured reliably. Lo 2: define account and list and differentiate between different types of accounts called the account stockholders" equity during a period. For each asset, liability and element of stockholders" equity (in acc. eq. ) we use a record. An account is the record of all the exchanges in a particular asset, liability, or. Recall assets include: cash, accounts receivable, inventory, prepaid expenses, Liabilities include: accounts payable, notes payable, accrued liabilities. Stockholders" equity include: common stock, retained earnings, dividends, revenues, investments, property land and equipment expenses. Lo 3: show the impact of business transactions on the accounting equation.
