2: The Accounting Process

Learning objectives

• LO1 – Describe asset, liability, and equity accounts, identifying the effect of debits and credits on each.
• LO2 – Analyze transactions using double-entry accounting.
• LO3 – Prepare a trial balance and explain its use.
• LO4 – Record transactions in a general journal and post in a general ledger.
• LO5 – Define the accounting cycle.