ACTG 2010 Lecture Notes - Lecture 3: Canada Revenue Agency, Trial Balance, Deferral
15 Sep 2016
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Document Summary
The accounting cycle: the process by which data about economic events are entered into an accounting system, processed, organized and used to produce information such as financial statatements. Accrual accounting revisited & the timing of revenue and expense. At the end of the day eventually all economic events are reflected in the. F/s: revenue and expense recognition will be explored in greater depth in chapter 4. During the year on a daily basis: economic event or transaction happens, prepare a journal entry (debits must equal credits, journal entry is posted into the general ledger to specific accounts using either. T-accounts or spreadsheet: general ledger: a book of accounts. At the end of the accounting period: identify, prepare and post any adjusting entries, create trial balance, prepare financial statements (assets = liabilities + oe, prepare and post closing entries (resets i/s accounts to zero) Process begins anew in next year or period.
