Week2WortherleyOAESCorrections

Week2WortherleyOAESCorrections - 1 . 2 . 3 . 4 . Question:...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1 . Question: Q1: Describe double-entry accounting and how it affects transaction analysis. Your Answer: For every asset in a business, there is a claim to that asset. It could be from the owner of the business or a stakeholder in the business. Double entry accounting is where you track no only where your money comes from, but where it goes. Additionally, it can go to more than one account, so it could also be called multiple entry accounting. Two entries are made for each account. One is a credit entry, the other is a debit entry. The two entries keep the accounting equation balanced. Assets = Liability + Owner’s Equity 2 . Question: Q2: Review pages 28 30 in Collier's Accounting for Managers text and explain one business event by showing its double-entry transaction, summarized ledger, and how that event affected the financial statements of the company. Your Answer: The pay weekly wages is an event that was an expense to the organization by 3,000. Additionally it was an asset to the bank account of 3,000 which
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/13/2010 for the course IT 6410 taught by Professor Bebble during the Spring '10 term at Walden University.

Page1 / 2

Week2WortherleyOAESCorrections - 1 . 2 . 3 . 4 . Question:...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online