Acc 290 Week 2 Learning Team Reflection

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Learning Team Reflection Week 2 ACC/290 Learning Team Reflection Week 2 There are four basic financial statements that businesses use in conducting business: income statement, retained earnings statement, balance sheet, and statement of cash flows. Income statement pertains to revenues and expenses of a company. Retained earnings statement is a summary of the adjusted retained earnings that occurred for a specific time. “A balance sheet reports the assets, liabilities, and stockholders’ equity of a business at a specific date” (University of Phoenix, 2011, Week One Reading). Cash flows statement is a summary pertaining to cash flow and outflows in detail of specific transactions within time periods. Classifying Transactions An individual account requires that either a debit or credit is recorded for each accounting transaction. Each…show more content…
A journal is a chronological listing of transactions, the amounts, affected accounts, and in what direction the accounts are affected. Additionally, a journal entry may include a brief description of the event. The general journal helps prevent or locate errors by comparing transaction debit and credit amounts. Format of a General Journal Entry |Date |Accounts |Debit |Credit | |Day |Account debited |Amount | | | | Account credited | |Amount

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