Accounting Principles, 10th Edition by Jerry J. Weygandt

By Jerry J. Weygandt

Weygandt's Accounting ideas introduces tough accounting thoughts with examples which are favourite to accountants. the hot variation has been up-to-date with the most recent IFRS/IASB criteria. extra assurance is integrated on foreign currency echange translation and LCM. extra discussions specialise in chance administration as a result of monetary concern. The examples additionally emphasize present examples which will aid accountants make the relationship to their daily lives.

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Assets Owner’s Equity Accounts Owner’s 1 Supplies 1 Equipment 5 Payable 1 Capital 1 Revenues Cash Equation Analysis 5 Liabilities 1 $8,000 $1,600 $7,000 $1,600 $15,000 (4) 1$1,200 $1,600 1 $7,000 ⎧ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎨ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎩ $9,200 1 1$1,200 5 $1,600 1 $15,000 1 Service Revenue $1,200 ⎧ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎨ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎪ ⎩ Basic Analysis $17,800 $17,800 The two sides of the equation balance at $17,800. Service Revenue is included in determining Softbyte’s net income. Note that we do not have room to give details for each individual revenue and expense account in this illustration.

S. Share Prices Slump,” Wall Street Journal (February 21, 2002). Study Objective [3] Understand why ethics is a fundamental business concept. indd Page 8 11/26/10 2:11:00 PM user-s146 8 /Users/user-s146/Desktop/Merry_X-Mas/New 1 Accounting in Action unethical financial reporting. In response, Congress passed the Sarbanes-Oxley Act of 2002 (SOX, or Sarbox). Its intent is to reduce unethical corporate behavior and decrease the likelihood of future corporate scandals. As a result of SOX, Ethics Note top management must now certify the accuracy of financial information.

Revenues. Revenues are the gross increase in owner’s equity resulting from business activities entered into for the purpose of earning income. Generally, revenues result from selling merchandise, performing services, renting property, and lending money. Common sources of revenue are sales, fees, services, commissions, interest, dividends, royalties, and rent. Revenues usually result in an increase in an asset. They may arise from different sources and are called various names depending on the nature of the business.

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