After studying this chapter, you should be able to:
- Use the account as the basic classifying and storage unit for accounting information.
- Express the effects of business transactions in terms of debits and credits to different types of accounts.
- List the steps in the accounting cycle.
- Record the effects of business transactions in a journal.
- Post journal entries to the accounts in the ledger.
- Prepare a trial balance to test the equality of debits and credits in the journalizing and posting process.
- Analyze and use the financial results—horizontal and vertical analyses.