As a starting point to the accounting process, a company identifi es the economic events relevant to its business. Examples of economic events are the sale of snack chips by PepsiCo, the provision of cell phone services by AT&T, and the payment of wages by Facebook. Once a company like PepsiCo identifi es economic events, it records those events in order to provide a history of its fi nancial …
An account represents a document used to record all similar transactions. It consists of a title, a debit column, and a credit column. The left side of an account is the debit side, and the right side of the account is the credit side. The balance of an account is determined by subtracting the smaller sum (debit or credit) from the larger sum. Initially, all transactions are recorded in a journ…