ACCTING 1002 Lecture Notes - Lecture 11: Accounting Equation, Accounting, Financial Statement

• School: University of Adelaide
• Department: ACCTING - Accounting
• Course: ACCTING 1002
• Professor: Nurmalisa Chi Alie

Document Summary

Accounting information systems- the system that identifies, records, summarises and communicates the various transactions of a business. They are built to capture and report the effects of a business" transactions. Additionally, they are about recording information to produce the financial statements that are used as a basis for business decisions. The key components of this process are: transactions, accounts. Transaction- any is any economic event that affects a company"s assets, liabilities or equity at the time of the event, and is recognised by generally accepted accounting principles. Purchase of equipment, consumption of supplies in operations, issuance of debt or shares. In each case, the event increases or decrease a specific asset, liability and/or equity account of the business. External transactions- occur between a business and an external party. E. g. an equipment purchase or issuance of shares. Internal transactions- occur within the same business entity.