Ch.4_Transactions_ST

Ch.4_Transactions_ST - Financial statements prepared from...

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1 MODULE 1: FINANCIAL ACCOUNTING Gapenski chapter 4
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2 Module 1 learning objectives Define accounting terms and correctly use accounting vocabulary to describe economic activity Read and interpret a company’s financial statements Identify the relationships among the financial statements Determine the effects of misstatements on financial statement balances Use the accounting equation to describe an organization’s financial position Analyze business activity with accounting concepts and principles and make recommendations based on analysis
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3 Gapenski Chapter 4: Transactions and the Accounting Cycle The Accounting Cycle Transactions
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4 The accounting cycle Transactions identified from source documents Transactions recorded in a journal Chart of accounts identifies unique activities Journal entries posted to a ledger Trial balance prepared from ledger
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Unformatted text preview: Financial statements prepared from trial balance 5 Transactions & The Accounting Cycle Journal Cash $50 Patient Revenue $50 Inventory $10 Cash $10 Ledger Cash Inventory Rev $50 $10 $50 ($10) ______ ________ ___ $40 $10 $50 6 Transactions Every transaction will affect at least two accounts (the double-entry system) Remember the accounting equation: Assets = Liabilities + Equity Assets = Liabilities + Beg. Equity + Revenues - Expenses 7 Transactions Assets = Liabilities + Equity + Revenues - Expenses Assets = Liabilities + Equity + Revenues - Expenses Patient services revenue 8 Transactions Assets = Liabilities + Equity + Revenues - Expenses Assets = Liabilities + Equity + Revenues - Expenses Patient services revenue Cash Accounts Receivable...
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Ch.4_Transactions_ST - Financial statements prepared from...

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