BUS 251 Chapter 3: Chapter 3.docx

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 251
• Professor: Wing Him Yeung

Document Summary

Synoptic journal: the recordings of transactions in a table or spreadsheet that shows calculations. To ensure that the basic accounting equation is balanced after each transaction. Analyzed how each transaction would increase or decrease different accounts while ensuring that the basic accounting equation remains balanced. In accounting, instead of using plus (increase) or minus (decrease), we will use an accounting system called the debit-credit system. Each account on the financial statements can be illustrated on the form of a. T-account , with debits on the left and credits on the right. Whether the debit side or the credit side refers to an increase or a decrease depends on the type of account involved. For asset, expense, or dividends declared accounts: debit indicates a positive amount or an increase, credit indicates a negative amount or a decrease. For liability, shareholders" equity, or revenue accounts: debit indicates a negative amount or a decrease, credit indicates a positive amount or an increase.