Weisinger Accounting Ch 5

when a business transaction occurs, the accountant analyzes the transaction to see how it affects each part of the accounting equation. – 1.Identify the accounts affected (at least 2 accounts are always affected).
2.classify the accounts affected.
3.determine the amount of increase or decrease.
4.make sure accounting equation stays in balance.
inventories – Balance sheet
Current assets
Budget – A plan of income and expenditure.
assets – cash at bank, debtors suppliers and it equipment
D.E.A.D. – debt- expenses, assets, dividends
Capital – Amount invested into business by owner
Other assets – Resources that do not fit well into one of the other asset classifications or are small enough that they do not warrant separate reporting
Fees – Monies earned by services (Lawyers/Doctors/Dentists)
petty cash slip – A form showing proof of a petty cash payment.
Which protocol designed to replace STP operates at Layer 3 of the OSI model?
In simple terms, what are assets and liabilities? – Assets are what you own and liabilities are what you owe.
Cash Bases Accounting – revenue when cash comes in and expense when cash goes out.
Sales Discounts – Offered by the seller for prompt payment.
accounting information system – the system of collecting and processing transaction data and communicating financial information to decision-makers
annual report – Document distributed to share holders and other interested parties that contains financial statements , notes to the financial statements
Which prоtоcоl designed to replаce STP operаtes аt Layer 3 of the OSI model?
liability – amount owed by a business

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