2. Recording business
After studying this chapter, you should be able to:
Use the account as the basic classifying and storage unit for accounting information.
Express the effects of business transactions in terms of debits and credits to different
types of accounts.
List the steps in the accounting cycle.
Record the effects of business transactions in a journal.
Post journal entries to the accounts in the ledger.
Prepare a trial balance to test the equality of debits and credits in the journalizing and
Analyze and use the financial results—horizontal and vertical analyses.
Salary potential of accountants
Selecting a major represents much more than the choice of courses a student takes in
college. To a significant degree, the student's major, along with academic performance, will
determine the career paths available upon graduation. Few professionals would
recommend a specific career choice based solely on salaries. However, as students select
their major and map out their career path, it is important that they make informed
decisions with respect to the potential financial rewards of the various options. Outlined
below is information on selected salaries for many accounting-related careers. These
salaries, current as of 2009, should be viewed only as guidelines. Salaries at all levels can
vary significantly between locations. Also, one should add 10 to 15 per cent to the listed
salary for professional certifications (such as the CPA) or for a graduate degree (Masters of
Accounting or MBA).