Flashcards in Chapter 3 Deck (13):
Economic events that require recording financial statements
A= L + S.E
Main points of transactions
1. be analyzed in terms of its effects on assets, liabilities, s.e
2. the two sides must be equal
3. each change in S.E must be indicated
an individual accounting record of increases and decreases in a specific asset, liability, stockholders equity, revenue, or expense item.
title the account, left is debit, right is credit
Assets, Expenses, Dividends
Liability, Common Stock, Revenue, Retained earnings
Accounting information System
System of collecting and processing transaction data and communicating financial info to decision makers.
Double entry system
Equality of debts and credits
Debits are greater than credits