ACCT 2001 Chapter : CHAPTER 3 The Accounting Information System
Document Summary
Chapter 3 - the accounting information system. For some reason this chapter is the most important. Debits, credits, and journal entries. Accounting information system - system of collecting and processing transaction data and communicating financial info to decision makers (financial statements) Ais rely on a process referred to as the accounting cycle. Will be a question on test where u have to put this in order. Analyze business transations - reciepts, etc, analyze what accounts are affected, determine if t account is increasing or decreasing. Journalize - create journal entry of debit or credit, synthesizes into 3/4 line items. Post in general ledger - list of accounts, keeps track of activity within that account + balances. Create trial balance - list of all accounts in company + ending balance as of date ur making the balance. General journal - records journal entries, provides a summary of all activities within the business, accounting cycle step 2.
