About This Chapter
Double-Entry Accounting Overview - Chapter Summary
Why is the double-entry accounting system used? What is the importance of adjusting accounting entries? What is the use of stock cards? These questions represent the types of subjects addressed in this chapter.
Through examples and definitions, you will develop a deeper understanding of various aspects of this accounting system. After you have reviewed the material in this chapter, you should be able to:
- Describe the double-entry accounting method
- Identify types of account adjustments and explain why they are important
- Use stock cards for cash and credit purchases and understand the First In, First Out method
- Define GST Clearing Accounts
Follow short video and text lessons that provide expert instruction and 24/7 accessibility from any device. You can view or read the lessons as many times as needed to fully grasp each concept and prepare yourself to take self-assessment quizzes to gauge how much you have retained from this chapter. Track your progress as you move from one lesson to the next using your handy Dashboard.
1. What Is Double-Entry Accounting? - Basics & Examples
Double-entry accounting is the method used by professional accountants and bookkeepers to maintain business (and even personal) financial records. The basis of the double-entry system is the accounting equation.
2. Account Adjustments: Types, Purpose & Their Link to Financial Statements
Accounting is a multi-step process. In this lesson, we will discuss adjusting entries. You will learn what they are, why they are important, and see examples.
3. How to Use Stock Cards for Sales & Purchases
What is in is out again. This lesson applies the First In First Out method of inventory and explains how to use stock cards to track sales, purchases, and returns of stock.
4. GST Clearing Accounts in Accounting: Definition & Examples
When accounting for transactions in Australia, we need to account for the General Sales Tax (GST). This lesson will define the GST Clearing Account and provide examples of its use.
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Other chapters within the VCE Accounting: Exam Prep & Study Guide course
- Establishing a Small Business
- Funding for Small Businesses
- Budgeting in Business
- Overview of Service & Trading Businesses
- Business Analysis Overview
- Price Setting Strategies for Business
- Financial Statements Overview
- Overview of Accounting Basics
- Overview of the Accounting Cycle
- Internal Control Use in Accounting
- Technology in Accounting
- Journals in Accounting
- Accrual-Based Accounting System
- VCE Accounting Flashcards