{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 1+2 - Chapters 1 2(Part 2 The Financial Statements...

Info icon This preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Dr. Ron Lazer Chapter 2, Page 1 Chapters 1 & 2 (Part 2): The Financial Statements & Transaction Analysis Dr. Ron Lazer Fall 2009 Second Quiz square6 Thursday, September 10 th , 2009 square6 Content: Chapters 1&2 – part 2 (specific instructions will be provided during class) square6 Allowed material: 4 function calculator Ron Lazer, Ph.D.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Dr. Ron Lazer Chapter 2, Page 2 Financial Accounting GAAP (Generally Accepted Accounting Principles) The Accounting Information System Financial Statements Transaction Analysis Financial Statements Ron Lazer, Ph.D. Today’s class objectives The Accounting Information System Double Entry Accounting The Accounting Cycle Ron Lazer, Ph.D.
Image of page 2
Dr. Ron Lazer Chapter 2, Page 3 How do you handle many transactions? square6 The transaction analysis of Kingsbery Automotive Services used a few transactions and accounts. However, with thousands of transactions and hundreds of accounts, the spreadsheet program is not sufficient. square6 Therefore accountants use a “double entry” system based on debits and credits. square6 Each transaction must still be analyzed to determine which accounts are involved, whether the accounts increase or decrease, and how much the balance will change. square6 The balance sheet equation can be used for this analysis, but with so many transactions, this is not realistic. square6 In practice, accountants use ledgers . Double-Entry Accounting square6 Account – a summary device box2 Detailed record of increases and decreases in specific assets, liabilities, or stockholders’ equity during a period box2 Each column under the accounting equation is an account square6 Ledger - a group of related accounts kept current in a systematic manner box2 Think of a ledger as a book with one page for each account box2 The ledger is a company’s “books” square6 Journal – the chronological record of transactions
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Dr. Ron Lazer Chapter 2, Page 4 Double-Entry Accounting T-Accounts square6 A simplified version of a ledger account is called the T-account .
Image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern