Chapter 4: The Bookkeeping Process and Transaction Analysis • Assets increase with a debit entry from a seller’s perspective • Transactions are recorded in a journal. Then they are recorded in-posted to a ledger with an account for each category. • The left side of a T-account is called the debit side, and the right side is called the credit side. • Increases in assets are recorded as debit entries to these accounts; decreases in assets are recorded as credit entries. For liabilities and owners’ equity, the opposite is true. • Revenue accounts normally have a credit balance; Expense accounts usually have a debit balance, and will increase with debit entries. • After the end of the accounting period, bookkeepers normally have to record and adjustment to certain account balances to reflect accrual accounting in the financial statements. • Accruals are transactions for which cash has not yet been received or paid, but the effect of which must be recorded in the accounts to accomplish a matching of revenues and
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