Financial Accounting and Reporting

Question 1

9 steps in Accounting Process

Answer 1

1. Analyzing the transaction (business document)
2. Journalizing
3. Posting
   (1 - 3 Recording Phase)
4. Preparing the unadjusted trial balance
5. Preparing adjusting entries
6. Preparing the financial statements
7. Preparing the closing entries
8. Preparing the post closing trial balance
9. Preparing reversing entries
   (4 - 9 Summarizing Phase)

Question 2

Basic Financial Statements

Answer 2

a. Statement of financial position
b. Income statement or a statement of comprehensive income
c. Statement of changes in equity
d. Statement of cash flows
e. Notes and disclosures

Question 3

This is where the accountant gathers
information from source documents and determines the impact of the transaction on the financial
position as represented by the equation “assets equals liabilities plus equity”.

Answer 3

Analyzing the transaction (business document)-