Accounting

Topics: Double-entry bookkeeping system, Bookkeeping, Asset Pages: 0 (2466 words) Published: September 8, 2014
Chapter
3-1

The Accounting
Information System
Chapter
3-2

Financial Accounting, Fifth Edition

Study Objectives
1.

Analyze the effect of business transactions on the basic
accounting equation.

2.

Explain what an account is and how it helps in the recording process.

3.

Define debits and credits and explain how they are used to record business transactions
transactions.

4.

Identify the basic steps in the recording process.

5.

Explain what a journal is and how it helps in the recording process.

6.

Explain what a ledger is and how it helps in the recording process.

7.

Explain what posting is and how it helps in the recording process.

8.

Explain the purposes of a trial balance.

9.

Classify cash activities as operating, investing, or financing.

Chapter
3-3

The Accounting Information System

Accounting
Transactions

The Account

Steps in the
Recording
Process

Analyzing
transactions

Debits and
credits

The journal

Summary of
transactions

Debit and
credit
procedures

Chart of
accounts

Stockholders’
equity
relationships

The ledger

The Recording
Process
Illustrated

Summary
illustration of
journalizing and
posting

The Trial
Balance

Limitations of
a trial balance

Posting

Summary of
debit/credit
rules
Chapter
3-4

The Accounting Information System
The system of collecting and processing
transaction data and communicating financial
information to decision makers is known as the
accounting information system.

Chapter
3-5

Accounting Transactions
Transactions are economic events that require
recording in the financial statements.
May be external or internal.
Not all activities represent transactions
transactions.
Each transaction has a dual effect on the
accounting equation.

Chapter
3-6

Accounting Transactions
Question: Are the following events recorded in the
accounting records?
Discuss
Purchased a
computer....
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