classify accounts as assets‚ liabilities‚ or owners’ equity is known as what? 4. What journal is used to record both the account(s) to be debited and the account(s) to be credited? 5. A collection of specific asset‚ liability and owners’ equity accounts in known as what? 6. What type of entry is made to adjust the accounts for internal events prior to preparing financial statements? 7. What type of entry is made to close out a temporary account and transfer the balance to retained earnings
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account is and how it helps in the recording process. 3. Define debits and credits and explain how they are used to record business transactions transactions. 4. Identify the basic steps in the recording process. 5. Explain what a journal is and how it helps in the recording process. 6. Explain what a ledger is and how it helps in the recording process. 7. Explain what posting is and how it helps in the recording process. 8. Explain the purposes of a trial balance
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TABLE Study Objectives 1. Explain what an account is and how it helps in the recording process. Define debits and credits and explain their use in recording business transactions. Identify the basic steps in the recording process. Explain what a journal is and how it helps in the recording process. Explain what a ledger is and how it helps in the recording process. Explain what posting is and how it helps in the recording process. Prepare a trial balance and explain its purposes. Questions 1 Brief
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slips‚ invoices‚ cancelled checks‚ etc.). When reviewing a transaction‚ determine which of the company’s accounts have been affected. The second step requires the transactions to be recorded chronologically in the general journal. When an entry is made in the journal‚ the dual entry method is used. This method is used because each transaction affects at least two accounts; so there must be at least one debit and one credit to support them; and the total of these
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and Investments Commission [ASIC]‚ taxing authorities‚ non-profit organisations‚ and others‚ such as employee and consumer groups. Accounting has a long history; it is said to have been used to track the costs of major ancient constructions. Double entry bookkeeping can be traced back to Italy over 500 years ago. Today professional accounting bodies such as Institute of Chartered Accountants in Australia (ICAA)‚ CPA Australia (CPAA) and the Chartered Institute of Management Accountants (CIMA)
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There are Five Basic Elements of Accounting and Financial Statements: |Assets |Economic resources owned by the company which are expected to provide future | | |benefits. Historically‚ assets have been accounted for at cost. However‚ current | | |accounting guidance is moving towards more fair value asset valuation models. | |
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BOOK KEEPING • Book keeping is all about business transaction. • Accounting not just includes book keeping but interpreting the records of business transaction. • Booking and Accounting allows a person to know whether there is profit made in a business transaction or losses made. • All transaction is kept in ledger. • In ledger‚ there are a lot of accounts. • For all the accounts‚ there is title. Etc. Cash Account‚ Mr. Tan’s Account or ABC Account. • If
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clicks and bricks‚ and bricks‚ clicks‚ and flips. Flips refers to catalogs (Wikipedia.org). The open-source software I chose is GnuCash. GnuCash is a free and open source personal and small business accounting software program that implements a double-entry bookkeeping system. It was initially aimed at developing capabilities similar to Intuit‚ Inc.’s Quicken application‚ but also has features for small business accounting (Wikipedia.org). GnuCash runs on the following operating systems: Windows‚
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receipts from customers. Verifying and recording invoices from suppliers. Paying suppliers. Processing employees’ pay and the related governmental reports. Monitoring individual accounts receivable. Recording depreciation and other adjusting entries. Objectives of accounting Permanent Record Any business firm needs a permanent record of the transactions that it indulges in. These records could be vital for internal purpose‚ for taxation purpose or for any other purpose. Whenever the organization
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secs 10 / 20 (50%) # Correct: 5 Grade Details - All Questions 1. Question : Carlton Company sold equipment for $3‚700 that originally cost $22‚000. The balance of the Accumulated Depreciation account related to this equipment was $19‚000. The entry to record the disposal of this equipment would include a debit to Loss on Sale of Equipment of $700. credit to Gain on Sale of Equipment of $700. credit to Equipment of $3‚000. debit to Gain on Sale of Equipment of $700. 0 of 2 Student Answer:
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