accounting 494975

c03TheAccountingInformationSystem.qxd 9/2/10 1:38 PM Page 100 chapter 3 THE ACCOUNTING INFORMATION SYSTEM ? the navigator ? ? Scan Study Objectives ? study objectives Read Feature Story ? Scan Preview After studying this chapter, you should be able to: ? Read Text and Answer Do it! 1 Analyze the effect of business transactions on the basic accounting equation. p. 110 p. 116 p. 119 p. 128 2 Explain what an account is and how it helps in the recording ? Work Using the Decision Toolkit process. ? Review Summary of Study Objectives 3 Define debits and credits and explain how they are used to record business transactions. ? Work Comprehensive Do it! p. 133 4 Identify the basic steps in the recording process. ? Answer Self-Test Questions 5 Explain what a journal is and how it helps in the recording process. ? Complete Assignments 6 Explain what a ledger is and how it helps in the recording ? Go to WileyPLUS for practice and tutorials process. 7 Explain what posting is and how it helps in the recording ? Read A Look at IFRS p. 159 process. 8 Explain the purposes of a trial balance. 9 Classify cash activities as operating, investing, or 100 financing.c03TheAccountingInformationSystem.qxd 9/8/10 1:18 PM Page 101 feature story How organized are you financially? Take a short quiz. sending us some money—now what did we do with Answer yes or no to each question: that?” To ensure the accuracy of your balance and the • Does your wallet contain so many cash machine security of your funds, Fidelity Investments, like all receipts that you’ve been declared a walking fire other companies large and small, relies on a sophisti- hazard? cated accounting information system. That’s not to say • Is your wallet such a mess that it is often faster to that Fidelity or any other company is error-free. In fact, fish for money in the crack of your car if you’ve ever really messed up your seat than to dig around in your wallet? checkbook register, you may take some ACCIDENTS comfort from…