Notes Chapter 3

Notes Chapter 3 - Chapter 3 Notes The Accounting...

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Chapter 3 Notes The Accounting Information System I. Accounting information system- collecting and processing transaction data and communicating financial info to decision makers a. Factors a.i. Nature of company’s business a.ii. Types of transactions a.iii. Size of the company a.iv. Volume of data a.v. Information demands of management and others II. Accounting Transactions a. Accounting transactions- economic events that require recording in financial statements a.i. Occur when assets, liabilities, or SE change as a result of some economic event a.ii. Ex. Purchased computer, paid rent, sold advertising space III. The Account a. T Account- explains basic accounting relationships; Consists of Title, Debit, and Credit. a.i. Debit-(Dr.) left a.ii. Credit-(Cr.) right a.iii. Debits must equal credits b. Double Entry System- the two-sided effect of each transaction is recorded in appropriate accounts; ensures accuracy and detects errors. b.i.
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Notes Chapter 3 - Chapter 3 Notes The Accounting...

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