Question: Identify and explain the four things that must be known
Identify and explain the four things that must be known when a transaction is to be entered into an accounting system.
Answer to relevant QuestionsWhy do entities divide assets, liabilities, and owners' equity into sub-accounts rather than accumulating data simply as assets, liabilities, and owners' equity? What is a trial balance and what is its purpose? Why doesn't a trial balance guarantee that your accounting is "correct"? What effect do revenue and expenses have on equity? Explain why.Below is Lashburn Ltd.’s summarized income statement for the year ended August 31, 2016, its first year in business.a. Prepare a spreadsheet and make the entries necessary to close the temporary accounts.b. Prepare the ...Provide a description of the event represented by each of the following journalentries.
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