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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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This note was uploaded on 04/27/2008 for the course ACCT 115 taught by Professor Kaplan during the Spring '08 term at Drexel.
- Spring '08