O'Reilly logo

Financial Accounting: Tools for Business Decision Making, 7th Edition by Donald E. Kieso, Jerry J. Weygandt, Paul D. Kimmel

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

CHAPTER 3

image

THE ACCOUNTING INFORMATION SYSTEM

image

LEARNING OBJECTIVES

After studying this chapter, you should be able to:

  1. Analyze the effect of business transactions on the basic accounting equation.
  2. Explain what an account is and how it helps in the recording process.
  3. Define debits and credits and explain how they are used to record business transactions.
  4. Identify the basic steps in the recording process.
  5. Explain what a journal is and how it helps in the recording process.
  6. Explain what a ledger is and how it helps in the recording process.
  7. Explain what posting is and how it helps in the recording process.
  8. Explain the purposes of a trial balance.
  9. Classify cash activities as operating, investing, or financing.

image

Feature-Story

image

ACCIDENTS HAPPEN

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 ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required