ch03 - CHAPTER 3 The Accounting Information System Study...

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CHAPTER 3 The Accounting Information System Study Objectives 1. Analyze the effect of business transactions on the basic accounting equation. 2. Explain what an 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. 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. Study Objective 1 - Analyze the Effect of Business Transactions on the Basic Accounting Equation Accounting Information System collects and processes transactions. communicates financial information to decision makers. Factors that shape the Accounting Information System include: nature of the company’s business types of transactions company size information demands of management and others. Most businesses use computerized accounting systems (electronic data processing – EDP – systems). Accounting Transactions economic events that require recording in the financial statements occur when assets, liabilities, or stockholders’ equity items change as a result of some economic event 3-1
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Transaction analysis - the process of identifying the specific effects of economic events on
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This note was uploaded on 04/01/2008 for the course ACCT 100 taught by Professor Punke during the Fall '08 term at Wisconsin.

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ch03 - CHAPTER 3 The Accounting Information System Study...

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