Story: The Wealth of Darius—Part II
   78

Learning Goal  6:Analyze Individual Transactions     94
Overview    94
Introduction to Transactions    96
What Is a Transaction?    96
Overview of Transactions     97
Transactions That Always Involve Assets    99
Examples of Analysis and Patterns    99
Expenses and Revenues in More Detail    112
Overview    112
Expenses    112
Revenues    116
Review: Avoid These Mistakes with Expenses
and Revenues    118
Nonasset Transactions: Liabilities and
Owner's Equity
   120
Overview    120
Expenses That Increase Liabilities    120
Revenues That Decrease Liabilities    126
Nonasset Transactions: Other    132
Overview    132
Transactions Within Liabilities    132
Transactions Within Owner's Equity    133
The Six Basic Patterns of Transactions    133
A Summary of All Transaction Patterns    133
Review and Vocabulary    136
Practice
   138

Learning Goal 7:Identify Common Assets
and Liabilities
   152

Overview    152
Asset Types    152
Liability Types    154
Practice    157
Story: The Wealth of Darius—Part III    159


Learning Goal 8:Explain the Four Basic Changes
in Owner’s Equity
    187
Overview    187
The Features of Owner's Equity     188
Essential Features of Owner's Equity    188
   
The Changes in Owner's Equity    189
All the Changes in Owner's Equity    189
The Four Basic Changes    190
Review and Vocabulary    192
Practice
   193

Learning Goal 9:Analyze the Cumulative Effect of Transactions     200
Overview    200
How to Solve “Cumulative Effect”
Problems     201
Practice    204
Cumulative Vocabulary Review    209
Cumulative Test
   210
Cumulative Test Solutions
   214
Help Table
   215

 
Learning Goal 10:Explain the Accounting
Process
   217
What Is Accounting and How Does
It Work?
   217
Accounting     217
The Accounting System    218
Three-Stage Process    218
Stage 1: Analyze the Event (Transaction
Analysis)    219
Stage 2: Process Data    221
Stage 3: Communicate Information    221
Example of All Stages    222
The Accounting Profession    222
Ethics in Accounting    223
Review and Vocabulary    228
Practice
   229

Learning Goal 11:Begin to Record     235
Overview    235
Begin to Record Transactions    235
Separate Columns for Increases
and Decreases    236
Crossing the Line    256
Practice    263    
 
    
  
 
Contents
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