6. Accounting is the process of identifying,
measuring and communicating economic
information to permit information judgment and
decision by users of the information
DEFINITION OF
ACCOUNTING
-----------
12. ADVANTAGE OF
ACCOUNTING
1
2
3
4
5
For a comparative study, A systematic
record enables a business to compare
one year’s results with those of other
years and locate significant factors leading
to the change if any.
15. The accounting cycle is the
sequence of accounting procedures
starting with journal entries for
various transactions and ending
with the financial statements and
the closing of temporary accounts.
DEFINITION
ACCOUNTING CYCLE
16. A "source document"
is any form of paper
record that is
produced as a direct
consequence of a
financial transaction,
and as a result, is
evidence that the
transaction has taken
place.
SOURCE
DOCUMENTS
17. The journalis where double entry
bookkeeping entries are recorded by
debiting oneor more accountsand
crediting another one or more accounts
with the same total amount. The total
amount debitedand the total amount
credited should always be equal,
thereby ensuring the accounting
equation is maintained.
JOURNAL
18. A company's main accounting records. A
general ledger is a complete record of
financial transactions over the life of a
company. The ledger holds account
information that is needed to prepare
financial statements, and includes
accounts for assets, liabilities, owners'
equity, revenues and expenses.
LEDGER
19. TRIAL BALANCE, A bookkeeping
worksheet in which the balances of all
ledgers are compiled into debit and
credit columns. A company prepares a
trial balance periodically, usually at the
end of every reporting period. The
general purpose of producing a trial
balance is to ensure the entries in a
company's bookkeeping system are
mathematically correct.
TRIAL
BALANCE
20. Adjusting Journal is an entry in
financial reporting that occurs at the
end of a reporting period to record
any unrecognized income or
expenses for the period. When a
transaction is started in one
accounting period and finished in a
later period, an adjusting journal
entry is required to properly account
for the transaction.
ADJUSTING
JOURNAL #
#
#
#
21. Financial Statements is a records that
outline the financial activities of a
business, an individual or any other entity.
Financial statements are meant to present
the financial information of the entity in
question as clearly and concisely as
possible for both the entity and for readers.
FINANCIAL
STATEMENTS
22. A journal entry made at the end of
the accounting period. The closing
entry is used to transfer data in
the temporary accounts to the
permanent balance
sheet or income
statement accounts.
CLOSING
JOURNAL
23. A post-closing trial balance is a list
of balances of ledger accounts
prepared after closing entries have
been passed and posted to the ledger
accounts.
POST CLOSING
TRIAL BALANCE
