The Accounting Cycle Larry M Walther; Christopher J Skousen Download free books at The Account ing Cycle © 2009 Larry M Walt her, under nonexclusive license t o Christ opher J Skousen & Vent us Publishing ApS All m at erial in t his publicat ion is copyright ed, and t he exclusive propert y of Larry M Walt her or his licensors ( all right s reserved) I SBN 978- 87- 7681- 486- Download free eBooks at bookboon.com Contents The Accounting Cycle Cont ent s Part 1: Welcome to the World of Accounting 1.1 1.2 1.3 1.4 1.5 Accounting Information Accounting Def ned Financial Accounting Managerial Accounting A Quality Information System Inherent Limitations 2.1 The Accounting Profession and Careers Accounting and Professional Ethics 3.1 3.2 3.3 3.4 The Fundamental Accounting Equation Assets Liabilities Owners’ Equity Balance Sheet 4.1 4.2 4.3 4.4 4.5 4.6 How Transactions Impact the Accounting Equation Edelweiss Collects an Account Receivable Edelweiss Buys Equipment With Loan Proceeds Edelweiss Provides Services to a Costumer on Account Edelweiss Pays Expenses With Cash Generalizing About the Impact of Transactions Distinguishing Between Revenue and Income 9 10 10 11 12 12 13 13 13 13 14 16 16 17 18 19 19 20 www.sylvania.com We not reinvent the wheel we reinvent light Fascinating lighting offers an ininite spectrum of possibilities: Innovative technologies and new markets provide both opportunities and challenges An environment in which your expertise is in high demand Enjoy the supportive working atmosphere within our global group and beneit from international career paths Implement sustainable ideas in close cooperation with other specialists and contribute to inluencing our future Come and join us in reinventing light every day Light is OSRAM Click on the ad to read more Download free eBooks at bookboon.com Contents The Accounting Cycle 5.1 5.2 5.3 5.4 5.5 5.6 5.7 The Core Financial Statements Financial Statements Income Statements The Statement of Retained Earnings Balance Sheet Statement of Cash Flows Articulation Unlocking the Mystery of Articulation 21 21 22 22 24 24 26 27 Part 2: Information Processing 28 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 Accounts, Debits and Credits Accounts Debits and Credits The Fallacy of “+/-” Nomenclature The Debit/Credit Rules Assets/Expenses/Dividends Liabilities/Revenues/Equity Analysis of Transactions and Events Determining an Account’s Balance A Common Misunderstanding About Credits 29 30 30 31 32 32 32 33 33 34 7.1 7.2 7.3 7.4 The Journal Illustrating the Accounting Journal Special Journals Page Numbering But, What are the Account Balances? 36 36 38 38 38 360° thinking Discover the truth at www.deloitte.ca/careers © Deloitte & Touche LLP and affiliated entities Click on the ad to read more Download free eBooks at bookboon.com ... bookboon.com Contents The Accounting Cycle Cont ent s Part 1: Welcome to the World of Accounting 1.1 1.2 1.3 1.4 1.5 Accounting Information Accounting Def ned Financial Accounting Managerial Accounting. .. on the ad to read more Download free eBooks at bookboon.com Contents The Accounting Cycle 5.1 5.2 5.3 5.4 5.5 5.6 5.7 The Core Financial Statements Financial Statements Income Statements The. .. Information System Inherent Limitations 2.1 The Accounting Profession and Careers Accounting and Professional Ethics 3.1 3.2 3.3 3.4 The Fundamental Accounting Equation Assets Liabilities Owners’