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Unformatted text preview: ⁃ Expenses - The outflows of assets in the process of earning revenue ⁃ The Realization Principle ⁃ Revenues are recorded when earned not when the cash is attained (Accrual Accounting) ⁃ The Matching principle ⁃ Expenses are recorded when they are incurred not when paid (Accrual Accounting) ⁃ Debits and Credits for Revenue and Expense ⁃ Expenses decrease Owners' Equity ⁃ Credit for decrease ⁃ Debit for increase ⁃ Revenues increase Owners' Equity ⁃ Credit for increase ⁃ Debit for decrease ⁃ Dividends (Not an expense) ⁃ Distributions of Retained Earnings ⁃ Debit for Increase ⁃ Credit for decrease ⁃ Capital Stock ⁃ Debit for decrease ⁃ Credit for increase ⁃...
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- Spring '08
- Accounting, Generally Accepted Accounting Principles, Double-entry bookkeeping system, decrease Debit, Expense Expenses decrease, OE Assets Debit, increase Debit