ROOM 210

Join our accounting class, every day period 7/8.

Vocabulary

Accounting Cycle

1. Collect and Verify source documents

  • You must collect financial documents and verify them
  • examples of financial documents include; invoices, receipts, memorandums, and check stubs

2.Analyze each transaction

  • You have to look at each business transaction and decide which are credit and which are debit

3. Journalize each transaction

  • You record the credits and debits in their column in the general journal.

4.Post to the ledger

  • You post each journal entry to the general ledger.

5.Prepare a trial balance

  • a trial balance is a proof of the equality of total debits and credits

6.Prepare a work sheet

  • a worksheet summarizes the financial information for the accounting period

7.Prepare financial statement

  • This is the step where you prepare the Income Summary Statement, Statement of Changes in Owner's Equity, and the Balance Sheet.

8.Journalize and post closing entries

  • This is where you record and post your closing entries to close out all the temporary accounts.

9.Prepare a post-closing trial balance

  • This is the last step of the accounting cycle. This is also where you make sure your total credits equal your total debits.

Financial Statements

Financial statements tell you how well your company is performing. They let you know whether your business is operating at a deficit or a surplus.

Profit Versus Loss

Bank Statements

Bank Statements

Bank Statements

Most Valuable Award

In my honest and professional opinion the most valuable form to the accounting cycle would be the Statements of Changes In Owners Equity. This is important so you can see how your business has changed during the duration of the previous quarter.