Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: CHAPTER 3 REVIEW OF THE ACCOUNTING PROCESS TIPS ON CHAPTER TOPICS TIP: This chapter is an extremely important one. A good understanding of this chapter and an abIlity to think and work quickly with the concepts incorporated herein are necessary for comprehending subsequent chapters. Although adjusting entries. were introduced in your principles course, you are likely to discover new dimensions to this subject in your intermediate accounting.course. Pay close attention when studying this chapter! TIP: When you encounter a transaction, always analyze it in terms of its effects on the elements The basic accounting equation (or balance sheet equation). For your analysis to be complete, it must maintain balance in the basic accounting equation. The basic accounting equation is as follows: ASSETS = LIABILITIES + OWNERS' EQUITY or A=L+OE Assets are economic resources. Liabilities and owners' equity are sources of resources; liabilities are creditor sources, and owners'. equity represents owner sources (owner investments and undistributed creditor sources, and owners'....
View Full Document

This note was uploaded on 12/03/2009 for the course ACG 3131 taught by Professor Rotella during the Spring '08 term at University of Central Florida.

Ask a homework question - tutors are online