1-Intermediate-Accounting-Introduction
1-Intermediate-Accounting-Introduction
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▪ Debt financing
Tracingzthe Historical Development of Intermediate Accounting
▪ {Assets}={Liabilities}+{Shareholders' Equity},
NOTE: Step No. 4,6,9,10 are optional, meaning they are not REQUIRED in the
preparation of financial statements.
However, for best internal control purposes, trial balance should be prepared.
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Accounting records of a business entity
▪ CONCEPTS :
✓ Quality
✓ Equilibrium
Types of Accounts:
1. Real (Permanent) Accounts – accounts are not closed at the end of accounting period.
2. Nominal (Temporary) Accounts – accounts that are closed at the end of the accounting period.
3. Mixed accounts – are accounts have both real and nominal account components.
4. Contra accounts – are accounts that are deducted from a related account, eg accumulated depreciation
5. Adjunct accounts – are accounts that are added to related account, e,g., premiums on bonds payable
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TRIAL BALANCE
▪ Is a list of general ledger accounts and their balance. It is prepared to check the
equality of total debits and total credits in the ledger.
1. Unadjusted trial balance – this is prepared before adjusting entries (contains real, nominal, mixed
accounts)
2. Adjusted trial balance –prepared after adjusting entries. (contains real and nominal accounts)
3. Post- closing trial balance – this is prepared after the closing process (contains real accounts only)
Activityz 1
Please answer the following key terms and definition :
2. Revolving fund
3. Payroll fund
4. Change fund
5. Dividend fund
6. Tax fund
NOTE: Please provide notebook for the subject
and write the highlights of our lesson (for checking)
7. Travel fund PLEASE WRITE all of the activity ON YOUR NOTEBOOK.
8. Interest fund