flows? a. 0 Operations, investment, and credit activities b. 0 Investments, credit, and cash operations c. 0 Operations, investment, and financial activities d. 0 Financing, investment, and credit activities Objective: Classify transactions using the rules of debit and credit. 3. Which accounts have a normal credit balance? a. 0 Assets and expenses b. 0 Liabilities and expenses c. 0 Assets and revenue d. 0 Liabilities and revenue 4. A debit entry may indicate which of the following:
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GAAP- (Generally Accepted Accounting Principles) Is rules that govern the way that accountants do the financial reports. http://www.investorwords.com/2141/GAAP.html Basic accounting formula- Is the formula that is used in accounting that reveals the total assets, liabilities, and the shareholders equity. Assets= Liabilities + shareholder Equity. http://www.investopedia.com/terms/a/accounting-equation.asp Transaction, t-account- It is an analysis of a transaction being processed in an account,
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teller. Debit card: A debit card is a plastic card which provides an alternative payment method to cash. While making purchases. The amount of a transaction is typically displayed on a card reader, after which the customer swipes the card and enters the pin number. There is usually a short delay while the EFTPOS (electronic fund transfer at point of sale) terminal contact the computer network (over a phone line and mobile connection) to verify the authorize the transaction. Credit card: A
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Introduction to Debits and Credits If the words "debits" and "credits" sound like a foreign language to you, you are more perceptive than you realize—"debits" and "credits" are words that have been traced back five hundred years to a document describing today's double-entry accounting system. Under the double-entry system every business transaction is recorded in at least two accounts. One account will receive a "debit" entry, meaning the amount will be entered on the left side of that account
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Accounting Presentation Group members The Accounting Information of System The Personnel, procedures, devices, and records used by an organization to develop accounting information and communicate that information to decision makers The accounting process Economic activities Accounting “links” decision makers with economic activities and with the results of their decisions. Decision makers Accounting information Actions (decisions) Types of Accounting Information
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Sheet Balance Sheet Balance Sheet Income Statement Balance Sheet Income Statement Income Statement Balance Sheet Balance Sheet Normal Balance Credit Debit Credit Credit Debit Credit Debit Debit Credit Debit Debit Credit Debit Debit Debit Debit Debit Credit Debit Credit Debit Debit Credit Debit (1) Debit Credit Debit Debit Credit Debit Credit Debit B Operating Expense Long-Term Liability Plant Asset C Current Asset Stockholders' Equity Intangible Asset Cost of Goods Sold Balance Sheet
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understand the rules of debits and credits. Explain the rules of debits and credits in a way that will help him understand them. Cite examples for each of the major sections of the balance sheet (assets, liabilities and stockholders' equity) and the income statement (revenues and expenses). | | | Student Answer: | | Debits and Credits are pretty simple. Everyone knows the famous saying " what goes up most come down." It's the same theory in that if you have a debit or credit, you will have
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for credit sales. Accounts Receivable occur from credit sales to customers. For sales on credit, they are recorded by increasing, or debiting, Accounts Receivable. A supplementary record, called the accounts receivable ledger, is created to maintain a separate account for each customer. A supplementary record, called the accounts receivable ledger, is created to maintain a separate account for each customer. To record a credit sale, one must debit Accounts Receivable—Customer Name, and credit Sales
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Chapter – 1 Introduction to Accounting Origin and history of Accounting can be traced back to some 10,000 years ago. The population in the area known as Mesopotamia, later Persia, and today the countries of Iran and Iraq had an active trading between towns and cities up and down the two rivers started the accounting concepts. At that time there were no letters or numbers. The merchants had to ship their merchandise up and down the rivers. They have to trust the boat man with their goods
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balances back down to zero. 2. I would Debit Salary Expense and Credit to PayrollExpenses 12/31 DR Salary Expense 1000 Cr Payroll 1000 | 2. (TCO 2) As required to complete Course Project 1, one must follow the cycle that includes 10 steps to complete the accounting cycle. (1) Explain how the debit/credit rules are used when developing journal entries (10 points) and (2) provide an example of the application of the debit/credit rules in the form of a journal entry. (10
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