22107 Chapter Notes - Chapter 3: Trial Balance, Financial Statement
Document Summary
Accounting information system (ais) - involves recording information to produce nancial statements that are used as a basis for decisions, so that future decisions can be made from learning from the past. A company"s ais is a system that identi es, records, summarises and communicates the various transaction of a company. Key components in the process to capture accounting information: Transaction - money entering or leaving the business entity, always having a source and use, affecting the accounts it leaves and enter. The dual entry nature of recording transaction is coded into debts (the uses of recourses) and credits (the sources of resources), on the left and right respectively. The journal is the row in the spreadsheet, the ledger is the column. Ledger - a collection of accounts and their balances, the most typical being a journal ledger, a collection of t-accounts for a company.
