基础会计学英语精品课件一.pptVIP

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Adjusting entries bring the accounts up-to-date. Adjustments are only made when financial statements are prepared. Adjust entries will affect both the income statement and the balance sheet. Will not affect the cash flow of the company. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Received cash of $1,900 on account. * Paid $900 on account. The accounts involved are: (1) Cash (asset) (2) Account payable (liability) * Paid $900 cash on account. * Wang Fang withdrew $600 cash for personal living expenses. The accounts involved are: (1) Cash (asset) (2) Owner’s capital (equity) Withdrawals * Wang Fang withdrew $600 for personal living expenses. * Accounts are used to appropriately categorize transactions. T-accounts are a simplified version used in practice. The type of account determines the side on which increases and decreases are recorded; the rules of debit and credit keep the accounting equation in balance In the double-entry accounting system, at least two accounts are always affected by a transaction. After a transaction is recorded, the accounting equation must remain in balance. Economic transactions of a business will impact various asset, liability, and/or equity accounts; but, they will not disturb the equality of the accounting equation.? * In order for all accounts to look the same, and to simultaneously make sure that the accounting equation stays in balance with double-entry bookkeeping, the debit and credit system was devised. Luca Pacioli first described it in 1494, and the basic system is so sound and efficient, we still use it today. Tradition aside, we would not still be using this ancient system if it did not work extremely well and efficiently. One could set up a system with pluses and minuses, but it would not be as efficient at generating the data n