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BUSINES TRANSACTIONS AND FINANCIAL STATEMENTS
Each business should have an accounting system best suited to its particular needs. The method used must provide the moat effective means of recording, summarizing, and presenting appropriate accounting data for management and for others who have an interest in the business. The accountant is responsible for the design and implementation of the accounting forms, the records, and the procedures. The Accountant must also consider the present structure of the business as well as its likely courses in the future. Modern accounting machines and data-processing equipments have substantial increased the speed with which information can be made available to management. Then a business is being established, a system must be introduced that records all transactions in monetary terms. Transactions are either internal, that is, within the company, or external, outside the company. Typical business transactions include the following: 1. purchase of merchandise, supplies, and services; 2. sale of merchandise; 3. receipt and disbursement of cash; 4. receipt and issue of negotiable instruments, such as checks or notes; 5. acquisition of property; 6. incurring and paying debts; 7. transfer of merchandise from warehouse to store; and 8. use of supplies and services in the operation of the business. The dollar of course, is the basic unit of measurements in accounting in the United States, and it is also widely used as a unit of measurements in international transactions. The collar amount of each transaction is entered in the accounting journals of the business. Information about the nature of the transaction and the dollar amount that is involved generally appears first on a business document, such as a sales invoice. Such documents are essential references in accounting because they reflect iterations in the company’s financial positions and operating performance.
Fine Foods Corporation 1918 Onondaga Parkway. Syracuse, New York
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Terms 2/10, n/30___________ Quantity Description Unit Amount Price 50 cases Fine Foods Onion Soup 4.00 200.00 100 cases Golden Apricot Nectar 6.00 600.00 20 cases Fine Foods Peanut Butter 10.00 __200.00__ 1000.00 A typical sales invoice
Central Stationery Store Statements of Partners’ Capital Year Ended December 31, 1976
An Equity Statement for a partnership Handy Andy House and Garden Suppliers Balance Sheet March, 14, 1976 ASSETS
LIABILITIES
Date: 2014-12-29; view: 1155
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