Double-entry bookkeeping system

The Basic Principles of Accounting Cherry Marler ACCT205-1203A-17, IP-1 Instructor Jeffery Bloom June 06, 2012 Abstract Accounting is used for several purposes. Investors, creditors, and individuals use accounting to see whether a business is successful or not. Managers and employees use accounting to make decisions on certain objectives. There are four main statements used in accounting: The balance sheet, income statement, the statement of retained earnings, and the statement of cash

Accounting has many branches that it can be divided into. It can be divided into several areas of activities. Accountings main branches are financial accounting, Management accounting, Cost accounting, Auditing, Tax accounting, Accounting systems, Fiduciary accounting and Forensic accounting. Financial accounting: This branch of accounting measure’s and records the transactions of a business. Financial accounting focuses on the preparation of the five basic financial statements namely statements

purchases on account. _____ 17. Which one of the following is not a justification for adjusting entries? a. Adjusting entries are necessary to ensure that revenue recognition principles are followed. b. Adjusting entries are necessary to ensure that the matching principle is followed. c. Adjusting entries are necessary to enable financial statements to be in conformity with GAAP. d. Adjusting entries are necessary to bring the general ledger accounts in line with the budget. _____ 18. If a resource

the journal. Transactions include all events that impact any of the company 's accounts, such as "cash on hand," or "accounts receivable," or "bank loans payable." Journal entries accumulate in chronological order —the order in which they occur. The second step in the accounting cycle is transferring (posting) journal entries into a ledger or ledgers, where they are organized first by account, and then chronologically within accounts.      Journal: On 1 September, two customers place product orders

faster than if it went for gross revenue. Gross revenue would be false indictor of the financial position of Landline because 80% of the gross revenue belongs to PRU yet Landline does all the logistics of hiring and paying statutory bills. The journal entries that re important here are the number of seconds per call, the applicable statuary tax per on each call, the hardware and software resource requirements necessary to facilitate the call every second or minute, and the human resource cost applicable

Journalized and Posting Adjusting Entries Then, adjusting entries are journalized and posted to the ledger. At the end of the accounting period the adjusting entries appearing in the work sheet are recorded in the journal and posted to the ledger; bringing the ledger into agreement with the data reported on the profit and loss account and balance sheet. The adjusting entries are dated as on the last day of the accounting period, even though they are

revenue was earned in July? A) $1,200. B) $2,000. C) $3,000. D) $5,500. E) $7,000. 13. Janfer Book Store purchased a new automobile that cost $10,000, made a down payment of $3,000, and signed a note payable for the balance. The entry to record this transaction is: A) Cash 3,000 Note Payable 7,000 Automobile 10,000 B) Cash 3,000 Automobile 3,000 C) Automobile 10,000 Cash 3,000 Janfer, Capital 7,000 D) Automobile 3,000 Cash

studying this chapter, you should be able to: Understand basic accounting terminology. Explain double-entry rules. Explain how transactions affect the accounting equation. Identify the steps in the accounting cycle and the steps in the recording process. Explain the reasons for and prepare adjusting entries. Explain how the type of ownership structure affects the financial statements. Prepare closing entries and consider other matters relating to the closing process. Prepare a 10-column work sheet

or at least report it. Role Technology Plays in Small Business Accounting In today's time the accounting and book keeping ranges from the old way of paper and pen to extremely large accounting data base systems for the major companies and organizations around the world; although either system could be used but

An excessive figure called the cooperative advertising reserve was literally recognized by Sunbeam in the year 1996. It was mainly established to fund a part or portion of its personal retailers’ costs by running the local promotions.Anderson was supposed to have identified the increase of the amount recorded known to 25% more than prior’s year accrual amount which turns out to be an amount of $21,800,000 dollars at least identified during the horizontal analysis of the financial statement especially