CH 2 Accumulating Accounting Information

CH 2 Accumulating Accounting Information -...

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CH 2 Accumulating Accounting Information Frame 1  THE MEANS OF CLASSIFYING AND SUMMARIZING BASIC ACCOUNTING  DATA The account Basic part of plan to gather and classify data found in business transactions  according to some common characteristics ESTABLISHED: Whenever the data to be recorded in it are believed to constitute useful  information to some party having a valid interest in the activities of the business  Involving receipt or payment of cash Recorded bc the amt of cash owned by a business at any money in time is apt to  be useful info to some interested party Varity of forms One acct for every item appearing in statement of financial position or retained  earnings “T-account” FRAME 2 Account divided into two groups Assets decreases right side Increases left side Normally left side balance Since posive amount are entered on the left side Cant normally be reduced to a negative or minus quantity Equities Increases on right side
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This document was uploaded on 11/04/2011 for the course SPEA-V 246 at Indiana.

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CH 2 Accumulating Accounting Information -...

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