F describe the flow of information in an accounting system;

Question 1

Accounting information flows

Answer 1

Journal Entries
General Ledgers
Trial Balances
Financial Statements

Question 2

Journal Entries

Answer 2

Chronological
Usefulness: Obtaining detailed info regarding a particular transaction
Subset of Journals: To record accruals not yet reflected in the accounting equations

Question 3

General Ledgers

Answer 3

(Accounting system CORE!)
Sort: Transactions by account
Usefulness: To review activity relating to a single account
Contains: T-accounts: which describe or analyze accounting transactions

Question 4

Trial Balance

Answer 4

Lists account balances at a particular point in time - prepared at end of acct. period but FIRST STEP IN PRODUCING FINANCIAL STATEMENTS.

TB shows only ENDING BALANCES

Question 5

Financial Statements

Answer 5

End product of Acct. sys. Prep. based on account totals from ADJUSTED TRIAL BALANCE