THE ACCOUNTING INFORMATION SYSTEM
After studying this chapter, you should be able to:
- Analyze the effect of business transactions on the basic accounting equation.
- Explain what an account is and how it helps in the recording process.
- Define debits and credits and explain how they are used to record business transactions.
- Identify the basic steps in the recording process.
- Explain what a journal is and how it helps in the recording process.
- Explain what a ledger is and how it helps in the recording process.
- Explain what posting is and how it helps in the recording process.
- Explain the purposes of a trial balance.
- Classify cash activities as operating, investing, or financing.
How organized are you financially? Take a short quiz. Answer yes or no to each question:
- Does your wallet contain so many cash machine receipts that you've been declared a walking fire hazard?
- Is your wallet such a mess that it is often faster to fish for money in the crack of your car seat than to dig around in your wallet?
- Was Aaron Rodgers ...