2100 solutions - CH3.doc

CHAPTER 3 The Accounting Information System Assignment Classification Table Study Objectives Questions BriefExercises Exercises AProblems BProblems 1. Analyse the effect of business transactions on the basic accounting equation. 1, 2, 3 1 1, 2, 3, 4, 13 1A, 2A 1B, 2B 2. Explain what an account is and how it helps in the recording process. 4 3. Define debits and credits and explain how they are used to record business transactions. 5, 6, 7, 8, 9, 10, 11, 12, 13 2, 3 5, 6 3A, 4A 3B, 4B 4. Identify the basic steps in the recording process. 14 5 5. Explain what a journal is and how it helps in the recording process. 15, 16 4, 6, 7 7, 8, 9, 12, 13 5A, 6A, 7A 5B, 6B, 7B 6. Explain what a ledger is and how it helps in the recording process. 17 7. Explain what posting is and how it helps in the recording process. 18 8 10, 11, 12, 13 6A, 7A 6B, 7B 8. Explain the purposes of a trial balance. 19, 20, 21 9, 10 10, 11, 12, 14, 15 6A, 7A, 8A, 9A, 10A 6B, 7B, 8B, 9B, 10B  ASSIGNMENT CHARACTERISTICS TABLE Problem Number Description Difficulty Level Time Allotted (min.) 1A Analyse transactions, classify cash flows, and calculate net earnings. Moderate 40-50 2A Analyse transactions and prepare financial statements. Moderate 40-50 3A Identify normal account balance and associated financial statement. Simple 20-30 4A Identify debits, credits, and normal balances; calculate cash flow and net earnings. Simple 30-40 5A Journalize transactions. Moderate 30-40 6A Journalize transactions, post, and prepare trial balance. Moderate 40-50 7A Journalize transactions, post, and prepare trial balance. Moderate 40-50 8A Analyse errors and their effects on trial balance. Moderate 30-40 9A Prepare corrected tri