ACC 221 1st Edition Lecture 3 Outline of Previous Lecture Chapter 2 Getting to know the Accounting System Accounting System o Accounting system reporting o Staying in balance o Common Stock o General Journal Outline of Current Lecture Chapters 1 2 Additional Facts About Accounting System Accounting System o Traditional accounting system routine o Asset Liability Owner s Equity Accounts Additional Facts o Entries don t have to affect different sides to stay in balance o No set accounting periods Current Lecture Chapters 1 2 Additional Facts About Accounting System Accounting System o All entries must follow the traditional accounting system routine General Journal General Ledger Trial Balance Balance Sheet o Asset Accounts include Cash Inventory Equipment o Liability Accounts include Notes Payable Non owner s claim to assets o Owner s Equity accounts include Common Stock Additional Facts These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute o Entries do not have to affect both sides of the accounting equation Assets Liabilities Owner s equity in order to remain in balance When buying inventory or equipment transaction only affects the Assets This is because we are removing crediting the cash of our assets in order to add Debiting additional inventory or equipment o Accounting cycle does not report on a specific time period such as a month or yearly basis but can occur any time Accounting cycle steps an accounting system goes through for each accounting period Balance sheet point in time financial report giving data for a specific accounting period
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