Chapter 2 - Chapter 2 Analyzing and Recording Transactions...

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Chapter 2 Analyzing and Recording Transactions 1. Analyzing and Recording Process 1. Source Documents : identify and describe transactions and events entering the accounting process 2. The Account and Its Analysis 1. Account : a record of increases and decreases in a specific asset, liability, equity, revenue, or expense item 2. General ledger (ledger): a record containing all accounts used by a company 3. Asset Accounts 1. Cash, accounts receivable, notes receivable, prepaid accounts, supplies, equipment, buildings, land 4. Liability Accounts 1. Creditors : individuals and organizations that have rights to receive payments from a company 2. Accounts payable, notes payable, unearned revenue (a liability that is settled in the future when a company delivers its products or services), accrued liabilities (amounts owed that are not yet paid) 5. Equity Accounts 1. Common stock, dividends (-), revenues, expenses (-) 2. Analyzing and Processing Transactions 1. Ledger and Chart of Accounts 1. Chart of accounts
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