Revenue Recognition Principle     365
The Matching Principle    366
The Full Disclosure Principle    366
Important Accounting Organizations    367
Financial Accounting Standards Board (FASB)     367
Securities and Exchange Commission (SEC)    368
American Institute of Certified Public
Accountants (AICPA)    368
Review and Vocabulary    369
Practice
   370
Cumulative Vocabulary Review
   374
Cumulative Test
   375
Cumulative Test Solutions
   381
Help Table
   382

 
Learning Goal 19:Explain the Five Kinds
of Information   385
Overview    385
Review    386
Describe Financial Condition    386
The Five Data Arrangements    389
Overview    389
1. Find a Transaction by Date    389
2. See All Parts of a Transaction    390
3. See if the Equation Stays in Balance    390
4. See the Historical Detail of Each Item    390
5. Determine the Balance of Each Item    391

Learning Goal 20:Explain the Use
of Accounts
   394

Overview 394
The Account and How It Is Used    395
Example    395
The Account    395
Rules for Increasing and Decreasing the
Accounts    397
Review and Vocabulary    399
Practice
   400


Learning Goal 21:Use the Owner’s Capital
Accounts   411
The Parts of Owner's Equity    411
Overview of Owner's Equity    411
   
Rules and Examples of Increases and
Decreases
   413
Decreasing the Owner's Capital Account    413
Increasing the Owner's Capital Account    417
Examples of Owner's Equity Transactions    418
Review    421
Practice
   422

Learning Goal 22:“Debits on the left, credit on
the right” 427
The Words "Debit" and "Credit"    427
What Debit and Credit Really Mean     427
Debit and Credit Rules Applied to
All Account Types
   428
Apply Debits and Credits to the Accounts    428
Debit and Credit Rules for the Six Basic
Account Types    429
Review and Vocabulary    431
Practice
   432

Learning Goal 23:Use a Ledger    442
Overview    442
Separate Books for Different Purposes    443
The General Ledger    443
Review and Vocabulary    447
Practice
   448    

Learning Goal 24:Use a Journal     449
The Purpose and Structure of a General Journal  449
Overview
   449
The Structure of a General Journal
   450
Recording Transactions in a General Journal
   451
How Transactions Are Recorded in a
General Journal
   451
The Best Way to Analyze Transactions
and Accounts
   454
Overview: Analyzing Transactions
   454
T Account Analysis
    455
Review and Vocabulary
   465
Practice
    467

Learning Goal 25:Use a Basic Accounting
System
    479
Practical Forms of the General Journal and
the Ledger Account
   479
A More Realistic Journal    479
 
    
  
 
Contents
 xii