33:382:103 Chapter Notes - Chapter 2: General Ledger, Promissory Note, Income Statement
26 Sep 2016
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Document Summary
The analyzing and recording process consists of four steps: Analyze each transaction and event from source documents. Record relevant transactions and events in a journal. Source documents: identify and describe transactions and events entering the accounting process. They are the sources of accounting information and can be in either hard copy or electronic form. These include sales tickets, checks, purchase orders, bills from suppliers, etc. Account: a record of increases and decreases in a speci c asset, liability, equity, revenue, or expense item. The general ledger is a record containing all accounts used by a company. Asset accounts: assets are anything owned or controlled by a company, and those resources have expected future bene ts. Cash account: re ects a company"s cash balance. All increases and decreases in cash are recorded in the cash account. Includes any medium accepted as cash (coins, checks, money orders, and checking account balances).
