Chapter2

Difference between cash and accrual accounting
- cash: record transactions when cash is received or paid
- accrual: record expenses and revenues when they are incurred or earned
What is an account and how it helps int he recording process

an account is a record of all increases/decreases in a specific asset, liability or OE
Basic steps of the accounting process:
- 1. identify the transaction from source documents
- 2. analyse each transaction in terms of its effects on the accounts
- 3. record the transaction in a journal
- 4. transfer the journal info to the appropriate accounts in the ledger
what is a ledger and how it helps in the recording process
- entire group of accounts maintained by an entity
- keeps in one place all the info about changes in specific account balances
what is posting

the procedure of transferringg journal entries to the ledger acounts
trial balance

a list of all accounts and their balance at a given time

Author

kirstenp

300629

Card Set

Chapter2

Description

chapter 2

Updated

2015-04-13T06:55:41Z

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