Tuesday, August 20, 2013

Chapter 2 The Recording Process

What is an Account?
An account is a record of increases and decreases in specific assets, liabilities, or owner’s equity.

What is Normal balance of an account?
A normal balance of an account is the side on which the account is increased. For example, Accounts Receivable has a debit normal balance because Accounts Receivable is an asset and assets are increased by debits (per Rule of Accounting # 1 for assets).

How do you Find Owner’s Equity?
We find owner’s equity by subtracting total liabilities from total assets.

What is a simple journal entry?
A simple journal entry is an entry that requires one debit and one credit.

What is a compound entry?
A compound journal entry contains more than one debit of credit.

What is Double Entry System?
Double Entry Bookkeeping System is an organized way to record in appropriate accounts the dual effect of each transaction. This is the system that Luca Pacioli included in his textbook.

What is posting?
Posting is the transferring of information from the journal to the general ledger.

What is a Chart of Accounts?
A Chart of accounts is a list of accounts and their numbers that specify their location in the general ledger.

What is a Trial Balance?
A trial balance is a list of accounts and their balances at a specific point in time, prepared in order to prove out the equality of the debits and the credits.

What is a Journal?
A journal is a book of original entry in which transactions are recorded in chronological order.

What is a Three-column form of account?
It is a form with columns for debit, credit, and running or cumulative balance amounts in an account.

What is a T account?
A T account is the most basic form of account.
Ch1 Accounting in Action

Ch2 Recording Process

Ch3 Adjusting the Accounts

Ch4 Completing the Accounting Cycle

Ch5 Merchandising Operations

Ch6 Inventories

Ch7 Accounting Information Systems

Ch8 Internal Control and Cash

Ch9 Accounting for Receivables

Ch10 PP&E, Natural Resources, and Intangible Assets

Ch11 Current Liabilities and Payroll

Ch12 Partnerships

Ch13 Corporations

Ch14 Corporations:Dividends, RE

Ch15 Long Term Liabilities

Ch16 Investment

Ch17 Statement of Cash Flows

Ch18 Financial Statement Analysis

Plato and Accounting

Price/Earnings Ratio

Plant Assets

Luca Pacioli and DaVinci

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Lindsey Vonn after winning the Downhill World ...
Image via Wikipedia

Lindsey Vonn

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