Accounting Cycle Flashcards
What are source documents?
A source document is the evidence that a transaction has taken place.
What is the third step in the accounting cycle?
Journals
What are journals?
Journals are the official recording of a transaction.
What is the fourth step in the cycle?
The general ledger (T-Account)
What is the ledger?
It is the place where the totals for the month of business is recorded in a credit and debit format.
What is the second step in the accounting equation?
Source documents
What is the trial balance?
This is a test of the amounts recorded in the general ledger.
What is the fifth step in the cycle?
Trial balance
What are financial statements?
Financial statements are used by the owners or managers of a company to see how the business is doing.
What is the sixth step in the cycle?
Financial statements
What is the first step in the cycle?
Transactions
What are transactions?
Transactions refer to the transference of finances during the course of business operations.
