内容西方财务会计ch.pptxVIP

? Copyright 2004 South-Western, a division of Thomson Learning. All rights reserved. Task Force Image Gallery clip art included in this electronic presentation is used with the permission of NVTech Inc.Chapter 2Analyzing TransactionsAccounting, 21st EditionWarren Reeve FessPowerPoint Presentation by Douglas CloudProfessor Emeritus of AccountingPepperdine UniversitySome of the action has been automated, so click the mouse when you see this lightning bolt in the lower right-hand corner of the screen. You can point and click anywhere on the screen.Objectives1. Explain why accounts are used to record and summarize the effects of transactions on financial statements.2. Describe the characteristics of an account.3. List the rules of debit and credit and the normal balances of accounts.4. Analyze and summarize the financial statement effects of transactions.After studying this chapter, you should be able to:Objectives5. Prepare a trial balance and explain how it can be used to discover errors.6. Discover errors in recording transactions and correct them. 7. Use horizontal analysis to compare financial statements from different periods.Each financial statement item, called an account, is included in the ledger. A group of accounts for a business entity is called a ledger.A list of the accounts in a ledger is called a chart of accounts.Major Account ClassificationsAssets are resources owned by the business.Liabilities are debts owed to outsiders (creditors).CashSuppliesBuildingAccounts receivableAccounts payableNotes payableWages payableMajor Account ClassificationsLiabilities are often identified on the balance sheet by titles that include payable.Assets are resources owned by the business.Liabilities are debts owed to outsiders (creditors).CashSuppliesBuildingAccounts receivableAccounts payableNotes payableWages payableMajor Account ClassificationsOwner’s equity is the owner’s right to the assets of the business.Revenues are increases in owner’s equity as a resul