Chapter Three

Financial Accounting
Accounting Activities and Users
The Recording Process
Dr./Cr. Procedures for Assets and Liabilities
Dr./Cr. Procedures for Assets and Liabilities
Dr./Cr. Procedures for Equity
Dr./Cr. Procedures for Equity
Dr./Cr. Procedures for Equity
Dr./Cr. Procedures for Equity
Dr./Cr. Procedures for Equity
Dr./Cr. Procedures for Equity
Equity Relationships
Summary of Debit/Credit Rules
Journalizing Transactions
The Journal
Journalizing
Journalizing
Simple and Compound Entries
The Ledger and Posting
Standard Form of Account
Posting
Chart of Accounts
The Recording Process Illustrated
The Trial Balance
The Trial Balance
Limitations of a Trial Balance
Trial Balance - Locating Errors
Adjusting the Accounts
Fiscal and Calendar Years
Accrual- versus Cash-Basis Accounting
Accrual- versus Cash-Basis Accounting
Recognizing Revenues and Expenses
The Need for Adjusting Entries
Types of Adjusting Entries
Adjusting Entries for Deferrals
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Statement Presentation
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Adjusting Entries for Accruals
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Adjusting Entries-summary
Summary of Basic Relationships
Adjusted Trial Balance and Financial
Statements
Preparing the Adjusted Trial Balance
Preparing Financial Statements
Closing the Books
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Closing Entries Illustrated
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Posting Closing Entries
Classified Statement of Financial Position
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