MAA103 Lecture Notes - Lecture 2: Accounts Payable, Accounting Equation, Financial Statement

• School: Deakin University
• Department: Business and Law
• Course: MAA103
• Professor: All

Document Summary

Topic 2 - an introduction to accounting reports: their content and uses. Provides the underlying framework for recording and summarising the economic events of an entity. The essential building blocks of accounting are the categories into which the economic events are classified. A transaction is a record of an economic event of an entity. may be internal or external. affects two or more components of the basic accounting equation. Transaction analysis is the process of identifying the specific effects of transactions and events on the accounting equation. *the accounting equation represents the relationship between assets, liabilities and owner"s equity. It is a simple equation but it must always balance. *another way to present the basic accounting equation" to show the relationship between a, Note: the amounts for oe, a and l are the same as the previous slide this is a derivation of the basic accounting equation. Used in carrying out such activities as production, consumption and exchange.