Chapter 3
Getting Started in the Bookkeeping Cycle
In This Chapter
Establishing a chart of accounts
Recognizing the difference between real and nominal accounts
Appreciating the centuries-old debits and credits method
Making journal entries for business transactions
The bookkeeping and recordkeeping system of a business requires an accountant to do the following:
Establish the chart of accounts in which the transactions of the business are recorded
Record original entries for transactions of the business as they occur day by day
Use the debits and credits system for recording transactions in order to keep the books (accounts) of the business in balance
Record additional adjusting entries ...
