This document defines key accounting terms and outlines the accounting cycle. It explains that financial assets include equity instruments, contractual rights to receive cash, and notes receivable. Financial liabilities are obligations to deliver cash or exchange instruments under potentially unfavorable conditions, such as notes payable. The accounting cycle involves analyzing transactions, recording them in a journal, posting to ledgers, preparing an unadjusted trial balance, making adjustments, preparing an adjusted trial balance, and using that to make financial statements, closing entries, and a post-closing trial balance.

1. Accounting
By: Francis Reden Enad

2. Financial Asset
01
An Equity Instrument of
another Entity02
A Contractual right to
receive cash or another
financial asset from
another entity
03
Cash

3. Financial Asset
04
Notes Receivable, Loans
Receivable, Investment in
Stocks, Investment in Bonds
Ex:
A Contractual right to
exchange instruments
with another entity under
conditions that are
potentially favorable,
(IAS 32.11)

4. Financial Liability
01
02
To deliver cash or other financial
instrument to another entity
To exchange financial instruments
with another entity under conditions
that are potentially unfavorable
Any liability that is contractual obligation:
Notes Payable, Loans Payable,
Bonds Payable
Ex:

5. Equity Instrument
Is any contract that evidences a residual
interest in the assets of an entity after
deducting all liabilities. (IAS 32)
Ordinary Share Capital, Preference
Share Capital
Example:

6. Is the systematic and comprehensive
recording of financial transactions
pertaining to a business.
ASSETS = LIABILITIES +
OWNER’S EQUITY
This means that the whole assets of
the company comes from the liability, or
debt of the company, and the income it
generated from the business
operations.
Accounting
BUY

7. The Accounting Cycle
Because accounting is all
about getting data and putting
them into the accounting
equation, the end products are
financial statements such as a
balance sheet and income
statements, the process of
accounting follows a cycle
called Accounting Cycle
Contents
Here

8. Infographic Style
• The general ledger is a
summary of the different
Subsidiary Ledgers and
can serve as a control
account
• Ledgers provide
chronological
details as to how
transactions affect
individual accounts
3. Post the
Transactions
on a Ledger
1. Analyze
Business
Transactions
2. Record
this in the
Journal
Step 1 Step 2 Step 3 • •

9. Infographic Style
8. Make the
closing entries
7. Prepare the
financial
Statements
6. Prepare
an Adjusted
Trial Balance
4. Prepare an
Unadjusted
Trial Balance
5. Make adjustments.
Journalize adjusting
entries
Step 4 Step 5 Step 6 Step 7 Step 8

10. Infographic Style
9. Make a
Post-Closing
Trial Balance
Step 9