Knowing the Numbers Many students who take this course do not plan to be accountants. If you?are in that group, you might be thinking, If I'm not going to be an accountant, why do I need to know accounting? In response, consider this quote from Harold Gen
EconomicEvent a. b. c. Account a. b. c. d. e. f.
Liabilities Increase Increase Decrease Credit decrease increase decrease increase decrease increase
Stockholders'Equity Increase NoEffect NoEffect NormalBalance increase decrease increase decrease in
Recording revenues when earned (the revenue recognition principle) and expenses with related
revenues (the matching principle)
the revenue recognition principle
requires that revenue be recognize in the accounting period when it i
The bank portion of the bank reconciliation for Carlin Company at November 30, 2012, is
shown here and on the next page.
The adjusted cash balance per bank agreed with the cash balance per books at November 30.
The December bank statement showed the follo
1. Why did the companys depreciation and amortization increase by $30 million from 2013 to
2. The company finally has net cash provided and not used by operations. How can we increase this
amount even further? What was the major reason for this incr
EHLINGER DEPARTMENT STORE
Income Statement (Partial)
For the Year Ended December 31, 2012
Less: Sales returns and allowances
Cost of goods sold
Inventory. January 1