ch03_ins NIU S11 stu - CHAPTER 3 THE ACCOUNTING INFORMATION...

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Chapter 3-1 Click to edit Master subtitle style C H A P T E R 3 THE ACCOUNTING INFORMATION SYSTEM Intermediate Accounting 13th Edition Kieso, Weygandt, and Warfield
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Chapter 3-2 1. Understand basic accounting terminology. 2. Explain double-entry rules. 3. Identify steps in the accounting cycle. 4. Record transactions in journals, post to ledger accounts, and prepare a trial balance. 5. Explain the reasons for preparing adjusting entries. 6. Prepare financial statement from the adjusted trial balance. 7. Prepare closing entries. Learning Objectives
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Chapter 3-3 Identifying and recording Journalizing Posting Trial balance Adjusting entries Adjusted trial balance Preparing financial statements Closing Post-closing trial balance Reversing entries Accounting Information System The Accounting Cycle Financial Statements for Merchandisers Basic terminology Debits and credits Accounting equation Financial statements and ownership structure Income statement Statement of retained earnings Balance sheet Closing entries The Accounting Information System
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Chapter 3-4 Collects and processes transaction data. Disseminates the information to interested parties. Accounting Information System Accounting Information System ( AIS )
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Chapter 3-5 How much and what kind of debt is outstanding? Were sales higher this period than last? What assets do we have? What were our cash inflows and outflows? Did we make a profit last period? Are any of our product lines or divisions operating at a loss? Can we safely increase our dividends to stockholders? Is our rate of return on net assets increasing? Accounting Information System Helps management answer such questions as:
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Chapter 3-6 Basic Terminology LO 1 Understand basic accounting terminology. Event Transaction Account Real Account Nominal Account Ledger Journal Posting Trial Balance Adjusting Entries Financial Statements Closing Entries
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Chapter 3-7 Debits and Credits LO 2 Explain double-entry rules. An ________ shows the effect of transactions on a given asset, liability, equity, revenue, or expense account. ___________ accounting system (two-sided effect). Recording done by debiting at least one account and crediting another. DEBITS must ______ CREDITS .
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Chapter 3-8 Account Name Debit / Dr. Credit / Cr. Debits and Credits An arrangement that shows the effect of transactions on an account. Debit = “Left” Credit = “Right” Account LO 2 Explain double-entry rules. An Account can be illustrated in a T- Account form.
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Chapter 3-9 Account Name Debit / Dr. Credit / Cr. Debits and Credits If Debit entries are greater than Credit entries, the account will have a debit balance. LO 2 Explain double-entry rules. $10,000 Transaction #2 $3,000 8,000 Transaction #3 Balance Transaction #1
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Chapter 3-10 Account Name Debit / Dr. Credit / Cr. Debits and Credits If Credit entries are greater than Debit entries, the account will have a credit balance.
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ch03_ins NIU S11 stu - CHAPTER 3 THE ACCOUNTING INFORMATION...

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