1. Prepared by: C. Douglas Cloud Professor Emeritus of Accounting Pepperdine University © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Student Version Accounting Systems Chapter 5 These slides should be viewed using the presentation mode (click the icon to start presentation). © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Prepared by: C. Douglas Cloud Professor Emeritus of Accounting Pepperdine University Reeve Warren Duchac PRINCIPLES OF FINANCIAL ACCOUNTING PRINCIPLES OF ACCOUNTING ACCOUNTING PRINCIPLES Using excel for Success 12e 24e 2e

2. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Learning Objective 1 1.Define and describe an accounting system.

3. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Basic Accounting Systems  An accounting system is the methods and procedures for collecting, classifying, summarizing, and reporting a business’s financial and operating information. LO 1

4. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.  As a business grows and changes, accounting systems also change in the following three-step process.  Analyze user information needs.  Design the system to meet the user needs.  Implement the system. Basic Accounting Systems LO 1

5. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. LO 1 Basic Accounting Systems  Internal controls are the policies and procedures that protect assets from misuse, ensure that business information is accurate, and ensure that laws and regulations are being followed.  Processing methods are the means by which the accounting system collects, summarizes, and reports accounting information. These methods may be either manual or computerized.

6. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Learning Objective 2  Define and describe an accounting system.  Journalize and post transactions in a manual accounting system that uses subsidiary ledgers and special journals.

7. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. LO 2  A large number of individual accounts with a common characteristic can be grouped together in a separate ledger called a subsidiary ledger.  The primary ledger, which contains all of the balance sheet and income statement accounts, is called a general ledger. Subsidiary Ledgers  Each subsidiary ledger is represented in the general ledger by a summarizing account, called a controlling account.

8. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Subsidiary Ledgers LO 2  The individual customer accounts are arranged in alphabetical order in a subsidiary ledger called the accounts receivable subsidiary ledger, or customers ledger.  Individual creditor accounts are arranged in alphabetical order in a subsidiary ledger called the accounts payable subsidiary ledger, or creditors ledger.

9. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Special Journal  One method of processing transactions more efficiently in a manual system is to use special journals. Special journals are designed to be used for recording a single kind of transaction that occurs frequently. LO 2  The all-purpose two-column journal, called the general journal or simply the journal, can be used for entries that do not fit into any of the special journals.

10. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Special Journals  The revenue journal is used for recording fees earned on account. LO 2  Cash fees earned would be recorded in the cash receipts journal.  Purchases made on account (on credit) are recorded in the purchases journal.  All cash payments are recorded in the cash payments journal.

11. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Revenue Journal  Revenues are normally recorded to the revenue journal when the company sends a bill, referred to as an invoice, to the customer.  Each invoice is normally numbered in sequence for future reference. LO 2

12. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Revenue Journal LO 2 Let’s take a step-by-step look at the process used to post the first entry. This entry was made on March 2, 2012, when NetSolutions issued Invoice No. 615 to Accessories By Claire for fees earned of $2,200.

13. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Exhibit 3 (in steps) LO 2 (continued) Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit Page 35 123456123456 123456123456 2012 Mar. 2615Accessories By Claire 2 2 0 0 00 6616RapZone1 7 5 0 00 18617Web Cantina2 6 5 0 00 27618Accessories by Claire3 0 0 0 00

14. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 123456123456 123456123456 6616RapZone1 7 5 0 00 18617Web Cantina2 6 5 0 00 27618Accessories by Claire3 0 0 0 00 Exhibit 3 (in steps) LO 2 (continued) Date Item P.R. Debit CreditBalance Mar. 2R352,2002,200 2012 Accounts Receivable Subsidiary Ledger Accessories By Claire Revenue Journal Page 35 2012 Mar. 2615Accessories By Claire 2 2 0 0 00 Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit

15. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit Page 35 123456123456 123456123456 Mar. 2615Accessories By Claire 2 2 0 0 00 LO 2 (continued) Exhibit 3 (in steps) 2012 6616RapZone1 7 5 0 00 18617Web Cantina2 6 5 0 00 27618Accessories by Claire3 0 0 0 00 Date Item P.R. Debit CreditBalance Mar. 2R352,2002,200 2012 Accounts Receivable Subsidiary Ledger Accessories By Claire

16. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit Page 35 123456123456 123456123456 2012 Mar. 2615Accessories By Claire 2 2 0 0 00 LO 2 (continued) Exhibit 3 (in steps) 6616RapZone1 7 5 0 00 18617Web Cantina2 6 5 0 00 27618Accessories by Claire3 0 0 0 00 The same procedure would be used to post the other transactions to the individual accounts in the accounts receivable subsidiary ledger.

17. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Revenue Journal Page 35 123456123456 123456123456 2012 Mar. 2615Accessories By Claire 2 2 0 0 00 LO 2 (continued) Exhibit 3 (in steps) 6616RapZone1 7 5 0 00 18617Web Cantina2 6 5 0 00 27618Accessories by Claire3 0 0 0 00 Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit Next, the amount column would be totaled. 9 6 0 0 0031

18. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. ACCOUNT Accounts Receivable Account No. 12 Balance Dr. Cr. Date Dr.Cr. Item Post. Ref. 2012 Mar.1Balance 3 400 00 319 600 00 13 000 00R35 The debit total is posted from the revenue journal to Accounts Receivable in the general ledger. Revenue Journal, page 35 Exhibit 3 (in steps) LO 2 (continued)

19. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit Page 35 123456123456 123456123456 ( 12 ) Indicates a debit posting of $9,600 to Accounts Receivable (General Ledger Account 12) 2012 Mar. 2615Accessories By Claire 2 2 0 0 00 6616RapZone1 7 5 0 00 18617Web Cantina2 6 5 0 00 27618Accessories by Claire3 0 0 0 00 319 6 0 0 00 Exhibit 3 (in steps) LO 2 (continued)

20. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. ACCOUNT Fees Earned Account No. 41 Balance Date Dr.Cr. Item Post. Ref. 9 600 00 R35 The credit total is posted from the revenue journal to Fees Earned in the general ledger. 9 600 00 Dr. Cr. LO 2 (continued) Exhibit 3 (in steps) Revenue Journal, page 35 Mar.31 2012

21. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Indicates a credit posting of $9,600 to Fees Earned (General Ledger Account 41 ) Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit Page 35 123456123456 123456123456 ( 12 ) 2012 Mar. 2615Accessories By Claire 2 2 0 0 00 6616RapZone1 7 5 0 00 18617Web Cantina2 6 5 0 00 27618Accessories by Claire3 0 0 0 00 319 6 0 0 00 ( 41 ) LO 2 Exhibit 3 (in steps)

22. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Cash Receipts Journal  All transactions that involve the receipt of cash are recorded in a cash receipts journal. Every entry recorded in the cash receipts journal will involve a debit to the “Cash Dr.” column. LO 2

23. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Mar. 1 Rent Revenue400 400 CASH RECEIPTS JOURNAL OtherAccounts PostAccounts ReceivableCash DateAccount Credited Ref.Cr.Cr.Dr. Page 14 2012 19 Web Cantina3,4003,400 28Accessories By Claire2,2002,200 30 RapZone 1,7501,750 Date Item P.R. Debit CreditCr. Bal. ACCOUNT Rent Revenue Acct. No. 42 GENERAL LEDGER 42 CR14 Mar. 1 2012 400 Exhibit 4 (in steps) LO 2 (continued) 400

24. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Mar. 1 Rent Revenue400400 CASH RECEIPTS JOURNAL OtherAccounts PostAccounts ReceivableCash DateAccount Credited Ref.Cr.Cr.Dr. Page 14 2012 19 Web Cantina3,4003,400 28Accessories By Claire2,2002,200 30 RapZone 1,7501,750 42 4007,3507,750 ( ) A check mark indicates that items in this column are posted individually. 1211 Exhibit 4 (in steps) LO 2 (continued) 31

25. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Accts.Other Post Payable SuppliesAccountsPost DateAccount CreditedRef.Cr.Dr.Dr.Ref.Amount PURCHASES JOURNAL Page 11 2012 Mar. 3Howard Supplies600600 7Donnelly Supplies420420 12Jewett Bus. Sys. 2,800Off. Equip.2,800 19Donnelly Supplies1,4501,450 27Howard Supplies960960 Exhibit 5 (in steps) LO 2 (continued)  The purchases journal is designed for recording all purchases on account.

26. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. PURCHASES JOURNAL Page 11 7Donnelly Supplies420420 12Jewett Bus. Sys.2,800Off. Equip.2,800 19Donnelly Supplies1,4501,450 27Howard Supplies960960 Note that the March 12 purchase of office equipment for $2,800 is recorded as a debit in the “Other Accounts Dr.” column. Also note that the account title is written in for proper posting. LO 2 (continued) Exhibit 5 (in steps) Accts.Other Post Payable SuppliesAccountsPost DateAccount CreditedRef.Cr.Dr.Dr.Ref.Amount PURCHASES JOURNAL 2012 Mar. 3Howard Supplies600600

27. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. PURCHASES JOURNAL Page 11 7Donnelly Supplies420420 12Jewett Bus. Sys.2,800Off. Equip.2,800 19Donnelly Supplies1,4501,450 27Howard Supplies960960 Accts.Other Post Payable SuppliesAccountsPost DateAccount CreditedRef.Cr.Dr.Dr.Ref.Amount PURCHASES JOURNAL 2012 Mar. 3Howard Supplies600600 DateItemP.R. Dr.Cr.Balance 2012 P11 LO 2 (continued) Exhibit 5 (in steps) Accounts Payable Subsidiary Ledger Howard Supplies 600 Mar. 3 600

28. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. PURCHASES JOURNAL Page 11 7Donnelly Supplies420420 12Jewett Bus. Sys.2,800Off. Equip.2,800 19Donnelly Supplies1,4501,450 27Howard Supplies960960 Accts.Other Post Payable SuppliesAccountsPost DateAccount CreditedRef.Cr.Dr.Dr.Ref.Amount PURCHASES JOURNAL 2012 Mar. 3Howard Supplies600600 (continued) LO 2 Exhibit 5 (in steps) The other entries to the accounts payable subsidiary ledger are recorded using the same procedure.

29. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. PURCHASES JOURNAL Page 11 2012 Mar. 3Howard Supplies600600 7Donnelly Supplies420420 12Jewett Bus. Sys.2,800 Off. Equip.2,800 19Donnelly Supplies1,4501,450 27Howard Supplies960960 This posting reference indicates that Office Equipment (Account 18) is debited in the general ledger for $2,800. Exhibit 5 (in steps) LO 2 Accts.Other Post Payable SuppliesAccountsPost DateAccount CreditedRef.Cr.Dr.Dr.Ref.Amount 2012 18

30. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Purchases Journal At the end of March, all columns are totaled and the equality of debits and credits is verified. Then the total amounts in the “Accounts Payable Cr.” and “Supplies Dr.” columns are posted. Because Office Equipment was posted earlier, the $2,800 total is not posted. LO 2

31. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 7Donnelly Supplies420420 12Jewett Bus. Sys.2,800Off. Equip.182,800 19Donnelly Supplies1,4501,450 27Howard Supplies960960 316,2303,4302,800 ( ) ( )( ) Accts.Other PostPayable SuppliesAccountsPost DateAccount CreditedRef.Cr. Dr.Dr.Ref.Amount PURCHASES JOURNAL Page 11 2012 Mar. 3Howard Supplies600600 21 ACCOUNT Accounts Payable No. 21 GENERAL LEDGER DateItemP.R. DebitCreditBalance Mar. 1Bal1,230 6,2307,460 31P11 2012 LO 2 Exhibit 5 (in steps) Supplies would be debited for $3,430 and 14 written in the parentheses.

32. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Cash Payments Journal  All transactions involving a credit to Cash are recorded in the cash payments journal. LO 2

33. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 33 CASH PAYMENTS JOURNAL OtherAccounts Ck.PostAccounts PayableCash DateNo.Account DebitedRef.Dr.Dr.Cr PAGE 7 2012 Mar. 2150Rent Expense1,6001,600 On March 2, 2012, issued Check 150 for rent of $1,600. Exhibit 6 (in steps) LO 2 (continued)  All transactions involving a credit to Cash are recorded in the cash payments journal.

34. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. The amounts listed in the “Other Accounts Dr.” column are posted on a regular basis. The $1,600 for Rent Expense is posted to Account No. 52. Cash Payments Journal LO 2

35. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. CASH PAYMENTS JOURNAL OtherAccounts Ck.PostAccounts PayableCash DateNo.Account DebitedRef.Dr.Dr.Cr PAGE 7 2012 Mar. 2150Rent Expense1,6001,600 General Ledger Account Rent Expense 1,600 1,600 DateItemP.R. Dr.Cr.Balance Account No. 52 52 LO 2 (continued) Exhibit 6 (in steps) 2012 Mar. 2 CP7

36. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. PAGE 7 2012 Mar. 2150Rent Expense1,6001,600 15151Grayco Supplies1,2301,230  52    54 21152Jewett Business Sys.2,8002,800 22153Donnelly Supplies420420 30154Utilities Expense1,0501,050 31155Howard Supplies600600 (continued) LO 2 Exhibit 6 (in steps) CASH PAYMENTS JOURNAL OtherAccounts Ck.PostAccounts PayableCash DateNo.Account DebitedRef.Dr.Dr.Cr

37. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. CASH PAYMENTS JOURNAL OtherAccounts Ck.PostAccounts PayableCash DateNo.Account DebitedRef.Dr.Dr.Cr PAGE 7 2008 Mar. 2150Rent Expense1,6001,600 15151Grayco Supplies1,2301,230 21152Jewett Business Sys.2,8002,800 22153Donnelly Supplies420420 30154Utilities Expense1,0501,050 31155Howard Supplies600600 CASH PAYMENTS JOURNAL OtherAccounts Ck.PostAccounts PayableCash DateNo.Account DebitedRef.Dr.Dr.Cr PAGE 7 2012 Mar. 2150Rent Expense1,6001,600 15151Grayco Supplies1,2301,230 21152Jewett Business Sys.2,8002,800 22153Donnelly Supplies420420 30154Utilities Expense1,0501,050 31155Howard Supplies600600 312,6505,0507,700 52    54  (21) (11)( )   The totals for “Accounts Payable Dr.” and “Cash Cr.” are posted. (continued) LO 2 Cash Payments Journal

38. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Learning Objective 3 1.Define and describe an accounting system. 2.Journalize and post transactions in a manual accounting system that uses subsidiary ledgers and special journals. 3.Describe and illustrate the use of a computerized accounting system.

39. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Computerized Accounting System 1.Computerized systems simplify the record-keeping process by recording transactions in electronic forms and, at the same time, posting them electronically to general and subsidiary ledger accounts. LO 3  Computerized accounting systems have the following three main advantages over manual systems:

40. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Computerized Accounting System 2.Computerized systems are generally more accurate than manual systems. 3.Computerized systems provide management with current account balance information to support decision making, since account balances are posted as the transactions occur. LO 3

41. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Learning Objective 4 1.Define and describe an accounting system. 2.Journalize and post transactions in a manual accounting system that uses subsidiary ledgers and special journals. 3.Describe and illustrate the use of a computerized accounting system. 4.Describe the basic features of e-commerce.

42. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. E-Commerce  Using the Internet to perform business transactions is termed e-commerce. LO 4  When transactions are between a company and a consumer, it is termed B2C (business- to-consumer) e-commerce.

43. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Learning Objective 5 1.Define and describe an accounting system. 2.Journalize and post transactions in a manual accounting system that uses subsidiary ledgers and special journals. 3.Describe and illustrate the use of a computerized accounting system. 4.Describe the basic features of e-commerce. 5.Use segment analysis in evaluating the operating performance of a company.

44. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Segment Analysis  One way to report revenue is by different segments. Businesses may be segmented by region, by product or service, or by type of customer. LO 5

45. Prepared by: C. Douglas Cloud Professor Emeritus of Accounting Pepperdine University © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Student Version Accounting Systems The End