BUS 210 Chapter 3 HW

BUS 210 Chapter 3 HW - BUS 210 Chapter 3 HW Questions 1 The...

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BUS 210 Chapter 3 HW Questions 1. The accounting information system is the system of collecting and processing transaction data and communicating financial information to decision makers. The steps in the recording process are analyzing each transaction in terms of its effect on the accounts, entering the transaction information in a journal and transferring the journal information to the appropriate accounts in the ledger. 2. Yes, a transaction can be entered only on the left side if the increase of the assets also results in the decrease of the assets of the same amount. 3. (a) No, because the death has no effect on the basic accounting equation. (b) Yes, because the purchase will increase assets and liabilities. (c) No, because the loss of an employee has no effect on the basic accounting equation. (d) Yes, because the dividends will decrease stockholder’s equity and assets. 4. (a) Paid cash for services will decrease assets and stockholder’s equity (b) No change in the equation
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This note was uploaded on 03/15/2011 for the course BUS 210 taught by Professor Schmeltz during the Spring '08 term at SUNY Stony Brook.

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BUS 210 Chapter 3 HW - BUS 210 Chapter 3 HW Questions 1 The...

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