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	Financial accountancy - Wikipedia, the free encyclopedia
		Financial accountancy (or financial accounting) is the branch of accountancy concerned with the preparation of financial statements for external decision makers, such as stockholders, suppliers, banks and government agencies.
		The accounting equation (Assets = Liabilities + Owners' Equity) and financial statements are the main topics of financial accounting.
		Various account types are classified as 'credit' or 'debit' depending on the role they play in the accounting equation.
	en.wikipedia.org /wiki/Financial_accountancy (361 words)

	Accounting equation - Wikipedia, the free encyclopedia
		Basic accounting equation is the foundation for the double-entry book-keeping system.
		This equation is behind debits, credits, and journal entries.
		An elaborate form of this equation is presented in a balance sheet which lists all assets, liabilities, and equity and makes sure it balances (thus the name of balance sheet).
	en.wikipedia.org /wiki/Accounting_equation (270 words)

	Accounting Theory
		Accounting is the process of measuring and recording the financial value of the assets and liabilities of a business and monitoring these values as they change with the passage of time.
		For the ledger to remain in balance whenever an entry is posted to an account matching account entries must be posted at the same time to ensure that the total of the A and E account balances remain the same as the total of the L, P and I account balances.
		An entry that increases the balance of an A or E account or reduces the balance of an L, P or I account is known as a debit.
	www.responsive.co.nz /theory.html (2139 words)

	Overview of the Accounting Cycle
		Recording of accounting transactions always affects one or more items in the accounting equation, and after the transaction is recorded the accounting equation must still be in balance.
		Accounts that should be closed are called “temporary” or “nominal” accounts and include the accounts that report results of operation.
		While the accounting cycle refers to the process followed to reflect accounting transactions in the financial statements, transaction cycles are business events grouped together for convenience purposes based on their common purpose or use of data.
	www.business.umt.edu /faculty/herron/courses/ACCT655_01/overview.htm (2569 words)

	"Accounting Methods" Defined & Explained
		The basic accounting equation states that assets equal liabilities and owner's equity, but can be modified by operations applied to both sides of the equation, e.g., assets minus liabilities equal owner's equity.
		This is the accounting basis that generally is required to be used in order to conform to generally accepted accounting principles (GAAP) in preparing financial statements for external users.
		This method stands in contrast to the percentage-of-completion method of accounting and is most often used when significant uncertainty exists with respect to the total cost of performing the contract and, accordingly, the ultimate amount of profit to be recognized thereon.
	www.lectlaw.com /def/a099.htm (392 words)

	Sample Lesson for ACCTG 211 (Site not responding. Last check: 2007-10-10)
		It also introduces you to the all-important accounting equation which is the basis of the processing and measuring part of the overall financial accounting function.
		Because the latter is fundamental to your understanding of numerous other dimensions of financial accounting, and because it receives detailed attention in the first four chapters of the textbook, it is imperative that you commit time to developing an understanding of the accounting equation, and its importance in the processing of financial accounting's business transactions.
		In an attempt to draw attention to the importance of the accounting equation, Lesson 2 is divided into two Parts, A and B. Part B introduces you to the accounting equation and is an important link to Chapter 2.
	www.worldcampus.psu.edu /il/courses/syl/ACCTG_0211l.html (2067 words)

	CCH Business Owner's Toolkit \| Accounting Basics
		The financial statement called the balance sheet is based on the "accounting equation." Note that assets are on the left-hand side of the equation, and liabilities and equities are on the right-hand side of the equation.
		Usually, at least one of the accounts is a balance sheet account.
		Many accounting programs for the computer are based on a double-entry system, but are designed so that you enter each transaction once, and the computer makes the corresponding second entry for you.
	www.toolkit.cch.com /text/P06_1320.asp (658 words)

	[No title]
		These accounts are often referred to as temporary or nominal accounts because at the end of a year (period) they are closed and their balances are transferred to a permanent Equity (Capital) Account (Balance Sheet Account).
		An Account is a separate record for each type of asset, liability, equity, revenue, and expense used to show the beginning balance and to record the increases and decreases for a period and the resulting ending balance at the end of a period.
		Account-a separate record for each type of asset, liability, equity, revenue, and expense used to show the beginning balance and to record the increases and decreases for a period and the resulting ending balance at the end of a period.
	www.dwmbeancounter.com /tutorial/DrCrTChart.html (2126 words)

	Accounting Tutorial
		The accounts are analyzed to determine the Sources (inflows) and Uses (outflows) of cash over a period of time.
		In the accounting equation, Assets are the objects, and are on the Left side of the equation.
		An Account is a record used to summarize increases and decreases in a particular asset or liability, revenue or expense, or in owner's equity.
	www.middlecity.com /ch02.shtml (1719 words)

	Frequently Asked Questions - Chapter 1 (Site not responding. Last check: 2007-10-10)
		Accounting is the art of recording, classifying, and summarizing, in a significant manner, and in terms of money, transactions of a financial character, and interpreting the results.
		He invented double-entry accounting, which evolved from this equation, and will be covered in Chapter 2.
		After we leave Chapter 1 we will not work with the equation the same way we are now, but the equation underlies all the rules and procedures that we will use to record and classify business transactions.
	www.swcollege.com /vircomm/warren_fin/faq/faq_01.htm (417 words)

	Accountancy 26: Accounting I (Site not responding. Last check: 2007-10-10)
		Accounting and business are so intertwined that it is nearly impossible to find a business without some sort of accounting, even if it is extremely informal.
		Accounting is classified by the kinds of stakeholders to whom we provide information.
		The accounting profession certifies certain levels of expertise, education, and experience of individual accountants; these certifications can be added to their list of credentials so the client can expect a certain level of competence.
	cdis.missouri.edu /previews/1996/lesson01.htm (2267 words)

	Accounting Equation
		These additional items under owners' equity are tracked in temporary accounts until the end of the accounting period, at which time they are closed to owners' equity.
		The accounting equation serves as the basis for the balance sheet, as illustrated in the following example.
		In this case, the difference is a loss of $175, so the owner's equity has decreased from $7500 at the beginning of the month to $7325 at the end of the month.
	www.quickmba.com /accounting/fin/equation (557 words)

	CTE/Business Education Course Description - Accounting I
		Students will apply the theory of debit and credit to the accounting equation, define a business transaction, and show how and why accounts are increased and decreased.
		Demonstrate the theory of debit and credit to increase and decrease accounts and the resulting changes that occur in the accounting equation.
		Describe the purposes of the revenue/sales, expense and drawing/withdrawal accounts and illustrate the effects on owner's equity.
	www.uen.org /core/core.do?courseNum=520312 (715 words)

	Financial Accounting I
		The owners' equity transactions may be further broken down in the accounts into Revenue and Expenses (Income Statement) and to Paid-In Capital and Dividends (Owners' Equity Statement.) An expanded accounting equation may be illustrated accordingly.
		One transaction means recording two entries in opposite directions so that each side of the accounting equation remains in balance after each transaction is recorded.
		Accounting thought has identified transactions that increase the left side of the equation as debits and those that increase the right side as credits.
	www.utm.edu /~bputman/put7.htm (1026 words)

	Accounting Equation
		The accounting equation represents the relationships on the Statement of Financial Condition in terms of a mathematical statement.
		The accounting equation can be expanded into more detail and still be in balance.
		All transactions which occur in a business can be analyzed in terms of their impact on the balance sheet by using the accounting equation.
	www.clt.astate.edu /lmoore/tutoria/equation.htm (542 words)

	EZ Accounting
		This is a partial list of the accounting terms that will be available to you after becoming a paid user.
		This equation is the basis of a balance sheet.
		Accrual basis of accounting is based upon generally accepted accounting principles.
	www.ezaccounting.com /term-sample-profit.asp (129 words)

	Accounting By Computer
		The structure of the chart of accounts is built around the “accounting equation” which states that what you own minus what you owe equals your net worth.
		That is the basis of double entry bookkeeping: if you add something to an account that lives on the left side, you must add it to an account on the right (or subtract it from another account on the left).
		Enter the accounts you are affecting, guess at which amount is a debit and which is a credit.
	www.abcsupport.com /Acct101.htm (1773 words)

	[No title]
		Determine whether increases and decreases in specific accounts are recorded as debits or credits.
		Accounts that are treated as offsets or reductions to related accounts for financial statement purposes, such as, Accumulated Depreciation.
		The normal account balances and bookkeeping rules for a contra account are exactly the reverse of those for the related type of account.
	www.humboldt.edu /~rlh3/BA250/ch4notes.doc (658 words)

	[No title] (Site not responding. Last check: 2007-10-10)
		This understanding will be achieved if students can: Competency ACC1: use the accounting equation as an accounting system to record business transactions, summarize the effects of the transactions on the specific assets, specific liabilities and owners' equity, and then prepare financial statements.
		To calculate economic profit, subtract from accounting profit a return to the owner for his/her/its financial investment in the business and a return to the owner for his/her time and expertise provided to the business that has not been recognized as compensation expense in arriving at accounting profit.
		The Office Supplies account had a $240 debit balance at the beginning of the year, $760 of supplies were purchased during the year, and the inventory of supplies at year-end totaled $190.
	www.uwlax.edu /af/acct/07_acctcompetencies.doc (3123 words)

	An Introduction to Understanding Financial Statements
		The Accounting Equation is an essential notion in financial accounting.
		The basic equation that expresses the relationship of assets and claims on assets is called the accounting equation:
		In using the accounting equation, if two of the three components are known, the third can be solved.
	bizzer.com /images/Financial/finstmt_02.html (134 words)

	[No title] (Site not responding. Last check: 2007-10-10)
		In this module, we will begin with a general introduction to the various types of accounting transactions and their effects on the accounting equation.
		Overview Recall the accounting equation: A = L + E We know that this must hold at every point in time (Why?).We can look at the equation at two different points in time, say beginning of the year and end of the year, and examine how assets, liabilities, and equity have changed.
		Then, from the accounting equation, it follows that the change in assets will be equal to the change in liabilities plus the change in equity.
	sominfo.syr.edu /facstaff/asahmed/BFinAccModIIL7.doc (1831 words)

	[No title]
		Accounting measures the cost of obtaining funds or financing operations.
		The stable-monetary-unit concept - ignores the effects of inflation on the accounting records (assumes that the dollar is stable).
		Handout 1A:Basic Concepts and The Accounting Equation Within any economic entity, records must be kept to provide information for those with a stake in the entity.
	www.bus.ucf.edu /mveit/PrinFinAcg/ch1.doc (958 words)

	Basic Acct Tutor
		Accounting reports summarize the major organizational events that occur during a given time frame in terms dollars and cents.
		Unfortunately, many people do not understand the language of accounting and when confronted with financial reports they feel just as overwhelmed as a traveler in a foreign country without local language skills.
		By taking this tutorial you are taking the first step to a better understanding of accounting reports and of financial issues in your organization.
	www.clt.astate.edu /lmoore/tutoria/Tutorial.htm (156 words)

	[No title] (Site not responding. Last check: 2007-10-10)
		Maintain a continuous record of the initial accounting equation and the changes that are occurring in it over time as determined in (2) so that the data for subsequent balance sheets, income statements, cash flow statements and retained earnings statements will be available.
		Required: Following the example in class, analyze and record the impact of February activity on the accounting equation by preparing a transactions worksheet.
		We are still starting with an initial accounting equation and keeping track of how that equation is changing over time so we can prepare subsequent balance sheets as well as income, cash flow, and retained earnings statements.
	www.wsu.edu:8080 /~frakes61/230Ch3.doc (1317 words)

	Financial Management: Fundamental Accounting Concepts
		In Financial Management: Fundamental Accounting Concepts, participants become familiar with basic accounting concepts and terms, enabling them to track business transactions that affect assets, liabilities, and owner's equity.
		They learn how use universal accounting tools-such as the general journal, general ledger, and trial balance-to ensure an organization follows sound accounting practices.
		Write the expanded accounting equation, including revenues and expenses.
	www.netg.com /catalog/detail.asp?c=US48501&pStatus=A (352 words)

	Basic Accounting, Part 1 (Site not responding. Last check: 2007-10-10)
		Over the next three months, we’ll cover accounting’s basic concepts including: the accounts in accounting, the accounting equation, using T account diagrams, and accrual vs. cash basis accounting.
		Total assets of the business are equal to the sum of the assets contributed by investors and the assets contributed by creditors.
		As the business grows and bills jobs, accounts receivable (money due to the business) and cash received from clients are added to the asset side of the equation, but the accounting equation holds at all times over the life of the business.
	reporterbase.com /archives/tips/tiparchivedetail.asp?articleid=100280 (240 words)

	The 'Accounting Equation'
		The accounting concepts of 'business entity' and 'dual aspect'.
		Note that the total of the assets equals the total of the C and L side; this will always be true, and is known as the 'accounting equation'.
		Using the new balance sheet as the starting point, try to imagine how it would change if (the next day) Jim obtains a bank loan of £4,000 which he pays into the business bank account.
	www.bized.ac.uk /learn/accounting/infosystems/bait/work02.htm (725 words)

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