Acct 101 Chap 3

Acct 101 Chap 3 - Acct 101 Chap 3 Accounting information is...

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Acct 101 – Chap 3 Accounting information is recorded in a systematic method called double entry bookkeeping. Information that is entered into an accounting information system should be supported by some sort of evidence that can be referred to later to verify its accuracy. Typically, information is recorded first in a journal, and then information is summarized in a ledger. Information is classified into “accounts” for various types of assets, liabilities, equity, revenues, expenses, and distributions. In the double entry bookkeeping system, the total debits in the ledger must equal the total credits in the ledger. Accounts that increase with debits are assets, expenses, and dividends. Accounts that increase with credits are liabilities, equity, and revenues. As transactions occur, they are recorded using journal entries. At the end of each accounting period, the accountant must make adjusting entries to: 1 accrue certain revenues or expenses that have occurred during the month, but for
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This note was uploaded on 03/31/2011 for the course ACCT 101 taught by Professor Wang during the Spring '11 term at Adelphi.

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Acct 101 Chap 3 - Acct 101 Chap 3 Accounting information is...

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