Accounting

Jerry J. Weygandt's Accounting Principles PDF

By Jerry J. Weygandt

ISBN-10: 047031754X

ISBN-13: 9780470317549

Accounting Principles 11th edition, via Weygandt, Kimmel, and Kieso presents a transparent creation to monetary accounting that's filled with actual international examples which are suitable to scholars' lives.  The staff for fulfillment authors comprehend the place scholars fight during this direction and feature constructed a studying procedure that illustrates the accounting cycle and key transactions, whereas giving them the instruments to use their studying via pattern workouts during the chapter.  by way of increasing assurance of IFRS, this version retains scholars on the leading edge of worldwide matters that influence their destiny careers in company and accounting.

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Example text

For example, as explained earlier, Ray Neal’s withdrawal of cash from Softbyte was not regarded as a business expense. Owner’s Equity Statement The owner’s equity statement reports the changes in owner’s equity for a specific period of time. The time period is the same as that covered by the income statement. Data for the preparation of the owner’s equity statement come from the owner’s equity columns of the tabular summary (Illustration 1-8) and from the income statement. The first line of the statement shows the beginning owner’s equity amount (which was zero at the start of the business).

4 Explain generally accepted accounting principles and the cost principle. Generally accepted accounting principles are a common set of standards used by accountants. The cost principle states that companies should record assets at their cost. 5 Explain the monetary unit assumption and the economic entity assumption. The monetary unit assumption requires that companies include in the accounting records only transaction data that can be expressed in terms of money. qxd 6/5/08 5:53 PM Page 28 TEAM-B 108:JWCL039:Ch01: 28 Chapter 1 Accounting in Action separate from the activities of its owner and other economic entities.

Some of these activities may lead to business transactions: Employees will earn wages, and suppliers will deliver ordered merchandise. The company must analyze each event to find out if it affects the components of the accounting equation. If it does, the company will record the transaction. Illustration 1-7 (page 15) demonstrates the transaction-identification process. Each transaction must have a dual effect on the accounting equation. For example, if an asset is increased, there must be a corresponding: (1) decrease in another asset, or (2) increase in a specific liability, or (3) increase in owner’s equity.

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Accounting Principles by Jerry J. Weygandt


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