intermediate accounting with available accurate solutions and graded A+

economic events - ANScause changes in the fianancial position of the company external events - ANSinvolve an exchange between company and separate economic entity purchase inventory for cash internal events - ANSdo not involve exchange btw company and separate economic entity (depreciation on eqpt or use of supplies) the accounting cycle - ANSunderlies the process used to capture the effect of economic events Assets= liabilities + stock holder's equity - ANSthe accounting cycle formula shareholder's equity - ANSowner's equity for a corporation 1. amounts invested by shareholders (paid in capital) 2. amounts earned by the corporation on behalf of its shareholders (retained earnings) - ANStwo primary reasons shareholder's equity arises retained earnings - ANSnet income - share holder distributions general ledger - ANSa collection of storage areas called accounts used to keep track of increases and decreases in financial position elements permanent accounts - ANSrepresent assets liabilities and shareholder's equity at any given time temporary accounts - ANSrepresent changes in retained earnings component of shareholder's equity for a corporation caused by revenue, gain, loss transactions typically zeroed out at the end of year and the net effect recorded in retained earnings (permanent account) journal - ANSprovides a chorological record of all economic events affecting a firm special journal - ANSused to record repetitive transactions (sales journal)