CHAPTER 2 Learning Objective: 02-01 Analyze routine economic events-transactions-and record their effects on a companys financial position using the accounting equation format. The Marchetti Soup Company entered into the following transactions during the month of June: (1) purchased inventory on account for $245,000 (assume Marchetti uses a perpetual inventory system); (2) paid $60,000 in salaries to employees for work performed during the month; (3) sold merchandise that cost $160,000 to
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(1) Uses of Accounting Information and the Financial Statements a. Accounting as an Information System i. Accounting is an information system that measures, processes, and communicates financial information about an economic entity. Accountants focus on the needs of decision makers. ii. External decision makers use financial accounting reports to evaluate how well a business has achieved its goals. These reports are called financial statements. iii. The primary external users of accounting information
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ACC 205 WEEK 1 DQ 2 ACCOUNTS NEW To purchase this visit here: http://www.nerdypupil.com/product/acc-205-week-1-dq-2-accounts-new/ Contact us at: nerdypupil@gmail.com ACC 205 WEEK 1 DQ 2 ACCOUNTS NEW What does the term “account” mean? What are the different classifications of accounts? How do the rules for Debits and Credits impact accounts? Please provide an example of how debits and credits impact accounts. Guided Response: Analyze several of your peers’ postings. Let at least two
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recorded at the time they occur. For example; when a service is rendered to a customer, the company will generate an invoice and record this revenue at this time, even though it may be several weeks before payment is collected. This is done using the double entry bookkeeping method, in this example, with an entry in both an accounts receivable account and a service revenue account. In the same way, the operating expenses for the company would also be recorded within the period
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term double-entry accounting? Examples are great and try to build on what each other has said. Double entry accounting is based on the fact that every financial transaction has equal and opposite effects in at least two different accounts. In the double entry system, transactions are recorded in terms of debits and credits. Since a debit in one account will be offset by a credit in another account, the sum of all debits must therefore be exactly equal to the sum of all credits. The double-entry
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The Process of the Accounting Cycle The process that goes through analyzing and journalizing transactions and is finished with a post-closing trial balance is the accounting cycle. The accounting cycle reports the financial information during the accounting period. It has 10 steps. In order to do it all correct it is better to follow step by step, instead of rushing it then later have problems with the number not adding up. Here all the steps and the explanations throughout the accounting cycle
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University of Phoenix Material QuickBooks® Online Assignment Supplementary Material Use the following information to complete your QuickBooks® Online assignments in Week’s 2–4. Week 2 Creating Deposits • Select the large + sign in the upper-middle part of the screen. • On the right-hand side under the Other menu, select Bank Deposit. • At the top left of the deposit screen, make sure account 100 Cash-Checking Acct is selected. • Enter the appropriate date to match data
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Financial Ratios HSM260 January 18, 2015 1-Current Ratio-the current ratio formula is current assets are divided by the current liabilities. This ratio is primarily used to give a perception of the organization’s capability of paying back its short term liabilities with short term assets. Data received from Appendix D 2002 states current assets of $104,296.00. Current liabilities equal $139,017.00. The current ratio is 0.75 2-Long-term solvency ratio-Net income (or after-tax profit) plus depreciation
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Universal School Supply Retailer, Inc (“USSR”) is a retailer of clothing, equipment, supplies, and other products targeted at students from grade school to college level. USSR is offering a promotion during August in which customers who spend a minimum of $100 will receive a $20gift card that can be applied to their next purchase at USSR. These gift cards expire on November 1 of the current year and cannot be redeemed for cash. The main issues involved in this situation are when to recognize the
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accounting 3 P1.3: Difference between a sole trader, a partnership and a limited company 4 P1.5: Use of financial software in Tourism and Hospitality business 5 P1.6: Impact of changes in IT and internet on hotels and airlines 6 P2.1: Double-entry book-keeping 6 P2.2: Calculattion and account for VAT on purchases and Sales 7 P2.3: Cash receipts, cash payments and bank reconciliation 8 P3.1: How a trial balance is constructed 8 P3.2: Trial balance along with adjustments used
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