Computation of Net Income Chapter 3 Nature of debits/credits, impact on assets, liabilities, equity, revenue, and expenses. Recording journal entries. Underlying theories of Accrual Accounting, the Matching Concept, Revenue Realization principle, and Expense Recognition rule. Impact of Net Income on owner’s equity and individual accounts affected. Nature of double-entry system of accounting. Nature of Retained Earnings and the financial statement on which it appears. Chapter 4 Purpose of adjusting…
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