chpt 3.1 business transactions a business transaction is a ________________ that causes a...
TRANSCRIPT
Chpt 3.1 Business Transactions
A business transaction is a ________________ that causes a __________________________.
Business TransactionExample 1 A business buys a new colour laser printer for
$700.
What Balance Sheet accounts would be affected by this transaction?
____________________________________________________________________
Business TransactionExample 2
A business pays off $3000 on their bank loan.
What Balance Sheet accounts would be affected by this transaction?
____________________________________________________________________
Business TransactionExample 3
A business has a fire inspector in to check the fire extinguishers.
What Balance Sheet accounts would be affected by this transaction?
____________________________________________________________________
Accounting Standard - Objectivity
Requires that a business’s accounting be recorded ___________________________
______________
Means that different people looking at the ________(source document) ____________
__________________________.
___________is recorded on ______, not on personal feeling or opinion.
Source Documents
A source document is a ___________with a dollar figure that _____________________________ to the recipient.
Examples include: Hydro bill, ___________, store receipts, ____________, cash register summaries, Sales invoice, ______________.
Source Documents
Remember:
1. ________________are made from business papers known as _________________.
2. Source documents are ___________for reference purposes and are _________of transactions. (paper trail)
Steps in Analyzing a Transaction
Step 1 – _______________(asset or liability) that must be changed and make all necessary changes.
Step 2 – See if the ______________has ______________. If the company is __________than owner’s equity
should _____________. If the company is ____________than owner’s equity
should ___________.
Steps in Analyzing a Transaction
Step 3 – Make certain that at __________of the individual items have changed.
Step 4 – Make sure that the ________________________________
_______________________________