Accounting Business Reporting for Decision Making

LEARNING OBJECTIVES

After studying this chapter, you should be able to:

4.1 describe the characteristics of business transactions

4.2 differentiate between a business transaction, a personal transaction and a business event

4.3 explain the accounting equation process of the double-entry system of recording

4.4 identify the impact of business transactions on the accounting equation

4.5 prepare an accounting worksheet and a simplified statement of profit or loss and balance sheet

4.6 discuss how journals and ledger accounts can help in capturing accounting information efficiently

and effectively

4.7 apply debit and credit rules, and record simple transactions in the journals and ledgers of the business

4.8 explain the purpose of a trial balance

4.9 detect errors in transaction analysis and investigate the origin of the errors.

CHAPTER 4

Business transactions

Contents

Chapter 4 preview

4.1 Recognising business transactions

4.2 Business and personal transactions and business events

4.3 The accounting equation

4.4 Analysis of business transactions

4.5 The accounting worksheet

4.6 Capturing accounting information: journals

and ledger accounts

4.7 Rules of debit and credit

4.8 The trial balance

4.9 Accounting errors