AIS - Exam 1 (Chapter 2) Exam Questions With 100% Correct Answers.
Accounting - Bookkeeping is typically done before accounting, the process of identifying, measuring, and communicating economic decisions to permit informed judgments Bookkeeping - A part of accounting that involves only the recording of economic events Not guaranteed success in the accounting profession The accounting cycle - the process by which companies produce their financial statements for a specific period 10 steps? External vs internal transactions - External transactions are exchanges of goods and services. Through the use of source documents (paper based or electronic) Internal transactions are adjusting entires, closing entries, and reversing entries Expanded Accounting Equation - Assets = Liabilities + Equity + Revenue - Expense Helps with principles of debit and credit General-purpose financial statements - Income statement, Stockholders equity, balance sheet, and statement of cash flows Sequential coding - Assigns numbers to objects in chronological sequence, also a method of internal controlsBlock coding - Chart of accounts, numbers assigned in blocks; each block is reserved for a particular kind of account.
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