By Jerry J. Weygandt
Weygandt's Accounting ideas introduces tough accounting options with examples which are common to accountants. the recent variation has been up to date with the most recent IFRS/IASB criteria. extra assurance is integrated on foreign currencies translation and LCM. extra discussions specialise in chance administration end result of the monetary trouble. The examples additionally emphasize present examples with a view to support accountants make the relationship to their daily lives.
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Extra info for Accounting Principles , Tenth Edition
The ease with which ownership can change adds to the attractiveness of investing in a corporation. Because ownership can be transferred without dissolving the corporation, the corporation enjoys an unlimited life. Although the combined number of proprietorships and partnerships in the United States is more than five times the number of corporations, the revenue produced by corporations is eight times greater. Most of the largest enterprises in the United States—for example, ExxonMobil, Ford, Wal-Mart, Citigroup, and Apple—are corporations.
This transaction results in an equal increase in assets and owner’s equity. Helpful Hint You will want to study these transactions until you are sure you understand them. They are not difficult, but understanding them is important to your success in this course. The ability to analyze transactions in terms of the basic accounting equation is essential in accounting. indd Page 16 11/26/10 2:11:09 PM user-s146 1 Accounting in Action The asset Cash increases $15,000, and owner’s equity identified as Owner’s Capital increases $15,000.
Purchase of Supplies on Credit. Softbyte purchases for $1,600 from Acme Supply Company computer paper and other supplies expected to last several months. Acme agrees to allow Softbyte to pay this bill in October. This transaction is a purchase on account (a credit purchase). Assets increase because of the expected future benefits of using the paper and supplies, and liabilities increase by the amount due Acme Company. The asset Supplies increases $1,600, and the liability Accounts Payable increases by $1,600.
Accounting Principles , Tenth Edition by Jerry J. Weygandt