Accounting Process

Voucher

A business document or written authorization for every cash disbursement.

Check Register

A journal where all checks are issued for payment are recorded.

Voucher Register

A journal where all vouchers are recorded in numerical sequence.

Trial Balance

A list of general ledger accounts with their respective debit or credit balance. A control device that eliminates accounting errors.

Chart of Accounts

A listing of all the entity's general ledger accounts in a systematic form.

Voucher System

A system of internal control over all cash disbursements.

Accruals, Deferrals using the expense and income methods

Adjustments that normally require reversing entries at the beginning of a new period:

Account

An accounting device used in summarizing the effects of transactions on each asset, liability, equity, revenue and expense.

1. Asset 2. Liability 3. Equity 4. Income 5. Expense

Each account is a record of information about:

All payments of cash for any purpose are recorded

Nature of a cash disbursements journal

Receipts of cash from any source are recorded

Nature of a cash receipts journal

Purchases of merchandise on credit are recorded

Nature of a purchases journal

1. Transaction Date 2. Accounts and amounts debited 3. Accounts and amounts credited 4. Brief explanation

Parts of a general journal entry:

1. Provides evidence that total debits and total credits equal in a general ledger. 2. Provides information that help accountants formulate adjustments.

Purposes of a trial balance:

Debit

Refers to the left side of an account.

Credit

Refers to the right side of an account.

Closing entries

They are made at the end of an accounting period after adjusting entries and financial statements have been prepared for the purpose of closing all nominal or temporary accounts.

A chronological record of transactions

What is a journal?

Group of accounts

What is a ledger?

1. Analyzing business transactions 2. Journalizing 3. Posting 4. Preparing unadjusted trial balance 5. Preparing adjusting entries 6. Preparing financial statements 7. Preparing closing entries 8. Preparing postclosing trial balance 9. Preparing reversing entries

What is the accounting cycle?