|Chapter 2||The Recording Process|
After studying this chapter, you should be able to:
1 Explain what an account is and how it helps in the recording process.
2 Define debits and credits and explain their use in recording business transactions.
3 Identify the basic steps in the recording process.
4 Explain what a journal is and how it helps in the recording process.
5 Explain what a ledger is and how it helps in the recording process.
6 Explain what posting is and how it helps in the recording process.
7 Prepare a trial balance and explain its purposes.
How organized are you financially? Take a short quiz. Answer yes or no to each question:
- Does your wallet contain so many debit card receipts that you've been declared a walking fire hazard?
- Was Yao Ming playing high school basketball the last time you balanced your bank account?
- Have you ever been tempted to burn down your house so you don't have to try to find all of the receipts and records that you need to fill out your tax return?
If you think it is hard to keep track of the many transactions that make up your life, imagine what it is like for a major corporation like Bank of ...