90 likes | 104 Vues
3. Analyzing Changes in Financial Position. 1. Definitions. Business Transaction : a financial event that causes a change in financial position An exchange of things of value Source Documents : provides information needed to process a transaction and proof a transaction occurred
E N D
3 Analyzing Changes in Financial Position 1
Definitions • Business Transaction: a financial event that causes a change in financial position • An exchange of things of value • Source Documents: provides information needed to process a transaction and proof a transaction occurred • Objectivity Principle: a business’s accounting must be recorded on the basis of clear, verifiable evidence e.g. source document • Page 59-61 ex. 1-5—1 and 3 together, 2, 4 and 5 individually
Steps in Analyzing a Transaction • Identify all asset and liability and owner’s equity items that must be changed and make all necessary changes • All transactions will affect at least two individual items • Make sure that the equation is still in balance
PowerPoint 3–1 Chapter 3 Figure 3.1: Metropolitan Movers Balance Sheet 4
PowerPoint 3–2 (part 1) Chapter 3 Transactions for Metropolitan Movers 5
PowerPoint 3–2 (part 2) Chapter 3 Transactions for Metropolitan Movers 6
PowerPoint 3–3 Chapter 3 Figure 3.9: Completed Equation Analysis Sheet forMetropolitan Movers 7
Assignment • Page 59-61—1, 2, 3, 4, 5 • Page 69-71—1, 2, 3 • Page 71-77—load spreadsheet file and follow steps in textbook, Page 74 Section 3.3 #1, 2 • Page 78-83--#1 (tog), 2, 3, 6, 7, Personalize It