Accounting Questions: Financial Accounting: Questions And Answers

885 Words4 Pages
BBA 1005
FINANCIAL ACCOUNTING

YIP BOH MAY
971206-14-6366
202521

SEPTEMBER 2015
CONTENTS
NO TITLE PAGES
1.0 INTRODUCTION 3-7
2.0 BODY 8-17
3.0 REFERENCE 18
4.0 COURSEWORK 19-24

1.0 INTRODUCTION
1.1 Explain the accounting equation.
From the large, multi-national corporation down to the corner beauty salon, every business transaction will have an effect on a company's financial position. The financial position of a company is measured by the following items:
1. Assets (what it owns)
2. Liabilities (what it owes to others)
3. Owner's Equity (the difference between assets and liabilities)
The accounting equation (or basic accounting equation) offers us a simple way to understand how these three amounts relate to each other. The
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1.2 Simply introduces the ledger, trial balance, income statement and balance sheet.
LEDGER :
The journal cannot fulfill all the requirements of accounting. These registers all the transactions in the chronological order in the same place. This is the foundation of the ready to ledger accounts. It's a mix of different transaction records due to the location of the specific account could not be reported. It failed to report the results of the transactions during a particular account.
TRIAL BALANCE :
Trial balance list of closing the ledger account balances a certain date and the first step in the preparation of financial reports. It is usually in the end of an accounting period for the assistance of draft out and prepare financial statements. Ledger balance is segregation for debit balance and credit balance. Assets and expense account debit in spreadsheets and liabilities, capital and income account appears on the credit. If all accounting entries recorded correctly, all the ledger balance extracted accurately, all in the test of debit balance of total assets must equal the sum total of credit balances.
INCOME STATEMENT

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