![]() If you look at this balance sheet on the screen, on the left-hand side we have assets. So given these tools, how can we record a financial transcription under formal accounting? To understand this, please think about the balance sheet as a huge T-account. ![]() And for any account, left-hand side is always called debit and right-hand side is always called as credit. As you can understand from the name, T-Accounts look like capital letter T. In formal financial accounting, we use T-accounts to record transactions. And, second, accounts payable under liable is also impacted. So inventory account of assets is impacted because of this transaction. What two accounts are impacted because of this transaction? First of all, firm purchasing inventory. If we revisit our example, a firm is purchasing inventory of $1,000 on account. And this system is called double-entry system. Thus, each transaction impacts at least two accounts. Business transactions involve firms receiving something and giving something else in return. But before that, let me please go through a couple of important terms which are going to be very useful for our understanding of formal financial accounting. In Lesson 2, we are going to learn how we can record financial transactions using tools in formal financial accounting. For more information on this exciting online master's in accounting program, refer to this link: View Syllabus If you are missing any prerequisites for the full degree, you can complete Coursera courses to demonstrate readiness and strengthen your application for the iMSA. Try an open course or two, then apply for admission into the credit-bearing version, as you may be eligible to take credit-bearing courses during the application process. The iMSA is a full Master of Accountancy program and students graduate with a highly recognized master degree. The University of Illinois at Urbana-Champaign, consistently ranked as one of the nation's top three accounting programs, now offers a master’s in accounting at a very affordable tuition rate and is completely online. ![]() Formal Financial Accounting is a prerequisite course for the University of Illinois' iMSA program and the terminology we will cover will be used throughout the courses in iMSA program. While knowledge on technical aspects of financial accounting is not necessary to understand and interpret financial statements, this knowledge is critical to be able to understand advanced topics in accounting. The main purpose of the course is to familiarize you with technical terms in financial accounting, such as debit, credit and T-account. This course builds upon what you learned in Financial Accounting: Foundations and Financial Accounting: Advanced Topics and introduces you to formal foundations of financial accounting.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |