Management and Organizational Studies 1023A/B Lecture Notes - Lecture 4: Uptodate, General Ledger, Deferral

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Maria Ferraro

Document Summary

System of collecting and processing transaction data and communicating financial info. Transaction analysis determines impact on the accounting equation. Assets: debit for increase (normal balance), cr for decrease. Liabilities and s/e: dr decrease, cr increase (normal balance: common shares, re and revenues same, expenses and dividends are opposite. Complete collection of all the accounts of a company. Accounts are individually numbered for easy reference. Used to collect info about all of the transaction affecting a specific account. List of all the accounts and their balances at a specific time. Serves to prove the mathematical equality of debits and credits after posting. Aids in the preparation of financial statements. Used to periodically test whether the general ledger is in balance. Made to adjust or update accounts at the end of the accounting period. Required b/c trial balance may not contain complete and up-to-date data. Types: prepayments (prepaid expenses, unearned revenues, accruals (accrued revenues, accrued expenses)