Reviewer

for
Computer 10
 Accounting
Is the process of IDENTIFYING,
MEASURING AND
COMMUNICATING ECONOMIC
INFORMATION to permit informed
judgments and decisions by users of
information.
Types of Business
1. Service
2. Merchandise
3. Manufacturing
 Accounting Cycle
1. Identify 1. Trial Balance
2. Analyze 2. Pre Closing
3. Journalize 3. Post to Adjusted
4. Post to General Trial Balance
Ledger 4. Prepare Financial
Statement
 Journal
Book that contains every
single transaction that has
occurred in a business and is
recorded in chronological
order 
Elements of Accounts
Asset Capital
Liabilities Liabilities
Owner’s Equity Expense
Revenue Asset
Expense Revenue
 Elements of Accounts
Asset - Ownership
Liabilities - Debts
Owner’s Equity - Wealth
Revenue - Sales
Expense - Money spent
 Charts of Accounts
List of all the account
titles being used by a
business entity for the
purpose of classifying
its transactions.
Normal Balance of Accounts

A=L+C
 The Journal
Date Account Title Debit Credit
 Debit or Credit

Debit, if asset and expense

increased.
Credit, if asset and expense
decreased.
 Debit or Credit

Debit, if liabilities, capital and

revenue increased.
Credit, if liabilities, capital
and revenue decreased.
Account
Titles
 Cash
If cash is involved in the
transaction.

Part of an asset.
Accounts Payable
When on account, on credit
are used in the statement. The
client or customer has the debt
to the business.
Accounts Receivable
When on account, on credit are
used in the statement, but the
business is the one who has the
debt with another business or
person.
Sales / Service Revenue

When the business earned

money by selling or rendering
a service.
Owner’s name, capital

The wealth of the business

increased.
Owner’s name, withdrawal
Owner’s name, drawings

The owner/ business had a

withdrawal in the bank.
 Inventory

If the merchandise or
inventory of the business is
involve.
 COGS
(Cost of Goods Sold)
 The cost of the products that
a retailer, distributor, or
manufacturer has sold.