ACC 290 Week 2 Learning Team Reflection Summary

ACC 290 Week 2 Learning Team Reflection Summary 
In week one, one learned about the four basic financial statements and how they are useful to internal and external users.  One also learned the rules of debit andcredit and journalizing transactions.
The accounting financial statements composed of four basic financial statements.  The balance sheet provides an understanding of a company’s financial condition by showing what the company owns and what it owes during a particular period.  The income statement reports a company’s revenues and expenses; it shows any profits or losses in a specific period.  The retained earnings statement shows how the company’s distributed its previous income to its owners in the form of dividends and how much retained in the business.  Then the statement of cash flows shows where the company obtained cash and how it used it during that period.
The rules of debit and credit are simple and accountant often use them.  The rules of debit and credit is, if one account is debited another account will get credited.  The accounts are assets, liabilities, and equities, all reported on the balance sheet.  One would log transactions, such as office furniture purchases into debit section of theequipment account.  
 
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