Chapter 2Accounting Cycle（I)AccountingEquationThe Account and Double-Entry AccountingAnalyzing the TransactionsJournalizingtheTransactionsPostingPreparing the Unadjusted Trial Balance
Chapter 2 Accounting Cycle (Ⅰ) Accounting Equation The Account and Double-Entry Accounting Analyzing the Transactions Journalizing the Transactions Posting Preparing the Unadjusted Trial Balance
Accounting equationsEconomicResourcesClaims to EconomicResourcesAssetsLiabilities + Owner'sEquityNetIncomeRevenues-expensesLiabilities +Owner'sAssets + expensesEquity +Revenues
Accounting equations Economic Resources Claims to Economic Resources Assets = Liabilities + Owner’s Equity Revenues- expenses = Net Income Assets + expenses = Liabilities + Owner’s Equity + Revenues
The Accounting EquationLiabilitiesAssetsOwnersEquityTahitiesmersEaut4ssets
AssetstheAssetsofarearesourceseconomicbusinessthat are expected to be of benefit inthe futureTheofmosttypesassetsarecommoncash,receivables,investments,officesuppliesmerchandise, furniture, land, and buildings
Assets Assets are the economic resources of a business that are expected to be of benefit in the future. The most common types of assets are cash,receivables, investments,office supplies, merchandise, furniture, land, and buildings
LiabilitiesLiabilitieswhichoutsiderclaimsarearepayabletoobligations-debtseconomicoutsidersThese outsider parties are called creditorsForpayable,example,notesaccountsliabilities(payable, accruedforexpensesincurred but not paid), long-term liabilities
Liabilities Liabilities are “outsider claims”, which are economic obligations-debts payable to outsiders. These outsider parties are called creditors. For example, notes payable, accounts payable, accrued liabilities( for expenses incurred but not paid), long-term liabilities