Management and Organizational Studies 1023A/B Lecture Notes - Lecture 3: Accounting Information System, General Ledger, Trial Balance

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

Document Summary

Accounting information system= system of collecting and processing transaction data and communicating financial information to decision-makers. Begins w/ determining what relevant transaction data should be collected and processed. Only events that cause changes in assets, liabilities, or equity should be recorded. E. g. hiring 1 employee should not be recorded, since it leads to a future accounting transaction but no at has occurred at this point in time. Accounting transaction= when assets/liabilities/equity items change as a result of some economic event. Account= an individual accounting record of increases and decreases in a specific asset, liability or. Double-entry accounting system= debit and credit movements must equal. Procedures used in the recording process is part of the accounting cycle ( 9 steps) = each transaction is analyzed to determine if it has an effect on the accounts. Evidence of transaction comes from a source document (e. g. sales slip, cheque, bill)