Chapter 2 - Accounting Information Systems Accrual Basis...

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Unformatted text preview: Accounting Information Systems Accrual Basis When it happens Cash Basis When paid Mostly Service type business Dentist, Doctor, Lawyers 1/10 Places an order Record in purchase order file to track what has been requested and what has been ordered ( managerial) but not in financial accounting records. 2/15 Receives desk and bill Record the exchange of assets --you now have the desk and the cost of the desk, exact amount of the bill. 3/1 Pays the bill Writes a check and sends it to the vendor. COST Original Cost- Historical Classification : Assets= Liabilities+Stk Equity+Revenue-Expense Accounts : Cash, A/R, Supplies, Inventory A/P, Mortgage Payable, X Payable,Unearned X Common Stock, Dividends, Retained Earnings Sales, Services Performed Rent X, Wages X, Chart or List of the Accounts Chart of Accounts- Lists accounts that can be used in recording a business transaction. CFO approval to open an account. Revenue Expenses = Net Income Who gets the net income? Who gets the net income?...
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Chapter 2 - Accounting Information Systems Accrual Basis...

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