Financial Accounting Chapter 2 Notes

Financial Accounting Chapter 2 Notes - Financial Accounting...

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Financial Accounting Chapter 2 Notes Account is and accounting form that is used to record the increases and decreases in each financial statement item Account has three forms Title Space for recording increases in the amount of the item Space for recording decreases in the amount of the item T Account resembles a T and is an accounting form to record debits and credits Debits (DR) are amounts debited to an account Credits (CR) are amounts credited to an account Balance of the account is the amount of cash on hand Ledger is a group of accounts for a business entity Chart of accounts is a list of accounts in a ledger Assets are resources owned by the business entity Liabilities are debts owed to outsiders (creditors) Unearned revenues are future service commitments (magazine subscriptions) Stockholder’s equity is the stockholder’s right to the assets of the business Dividends represent distributions of earnings to stockholders Revenues
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Financial Accounting Chapter 2 Notes - Financial Accounting...

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