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Review of the Accounting Process





After studying this chapter, you should be able to:
  • LO1 Analyze routine economic events—transactions—and record their effects on a company’s financial position using the accounting equation format.

  • LO2 Record transactions using the general journal format.

  • LO3 Post the effects of journal entries to T-accounts and prepare an unadjusted trial balance.

  • LO4 Identify and describe the different types of adjusting journal entries.

  • LO5 Determine the required adjustments, record adjusting journal entries in general journal format, and prepare an adjusted trial balance.

  • LO6 Describe the four basic financial statements.

  • LO7 Explain the closing process.

  • LO8 Convert from cash basis net income to accrual basis net income.








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