The basic accounting model

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The basic accounting model by Mind Map: The basic accounting model

1. accounting as an information system

1.1. financial position and the accounting equation

1.1.1. assets

1.1.2. liabilities

1.1.3. owners' equity

1.1.4. stockholders' equity

1.1.4.1. contributed capital

1.1.4.2. retained earnings

1.1.4.2.1. revenues and expenses

1.1.4.2.2. dividends

1.2. effects of business transactions on financial position

1.3. communications through financial statements

1.3.1. the income statement

1.3.2. the statement of retained earnings

1.3.3. balance sheet

1.3.4. statement of cash flows

2. double-entry system

2.1. recognition, valuation, and classification

2.1.1. the recognition issue

2.1.2. the valuation issue

2.1.2.1. cost

2.1.2.2. value

2.1.2.3. the cost principle

2.1.3. the classification issue

2.2. account and double-entry system

2.2.1. stockholders' equity accounts

2.2.2. account titles

2.2.3. the double-entry system

2.3. recording and posting transactions

2.3.1. the general journal

2.3.2. procedure for recoding a journal entry

2.3.3. posting to the ledger

2.4. trial balance

3. measuring business income and adjusting process

3.1. measuring issues

3.1.1. the accounting period issue

3.1.2. the continuity issue

3.1.3. the matching issue

3.1.3.1. cash basic of accounting

3.1.3.2. accrual accounting

3.1.3.3. accrual accounting and performance measures

3.2. adjusting process

3.2.1. deferrals

3.2.2. accruals

3.2.3. allocating recorded costs between two or more accounting period

3.2.4. recognizing unrecorded expenses

3.2.5. recognizing unrecorded revenues

3.3. adjusted trial balance(ATB)

4. completing the accounting cycle

4.1. overview of the accounting cycle

4.2. closing entries

4.2.1. income summary account

4.2.2. required closing entries

4.2.3. the accounts after closing

4.2.4. the post-closing trial balance

4.3. reversing entries - the optional first step in the next accounting period

4.4. the worksheet - an accountant's tool

4.4.1. working papers

4.4.2. the work sheet

4.4.3. preparing the work sheet