Unformatted text preview: someone else. i. Ex: McDonald’s b. Internal Exchanges- These events do not involve exchanges with others outside business, but rather occur within the company itself. i. Ex: Subway 4) Studying the Accounting Methods a. Analyze Transactions- Often referred to as transaction analysis, looked at how the business activities effect the basic accounting equation. i. Duality of Effects- Every transaction has at least two effects on the basic accounting equation. ii. A=L+SE (Basic equation for accounting ) everything must be equal in this equation always. 1. Chart of Accounts- list that designates a name and reference number that the company will use when accounting for each item it exchanges. 2....
View Full Document
- Spring '08
- Balance Sheet, McDonald, basic accounting equation., External exchanges- Exchanges