chapter 2 notes

chapter 2 notes - Accounting: Ch. 2 notes I. Analyzing and...

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Accounting: Ch. 2 notes I. Analyzing and recording processes A. The accounting process provides information in useful reports or financial statements to determine markers B. Source documents: identify and describe transactions and events entering the accounting process 1. Example: an item purchased on credit resulting in an entry in the seller's information system of the sale 2. Provide objective and reliable evidence about transactions and events and their amounts C. The account and its analysis 1. Vocabulary a) Account: a record of increases and decreases in a specific asset, liability, equity, revenue or expense item b) Ledger: an electronic record containing all accounts arranged into three categories (asset account, liability account, equity account) 2. Asset account includes. .. a) Cash: coins, checks, money orders, checking account balances b) Accounts receivable: credit sales which are increased by credit sales and decreased by costumer payment c) Prepaid accounts: assets that represent prepayments of future expenses and
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chapter 2 notes - Accounting: Ch. 2 notes I. Analyzing and...

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