MOD 9 - THE ACCOUNTING CYCLE Flashcards
1
Q
what is the accounting cycle ?
A
a process where bookkeepers keep track of business transactions
2
Q
at the end of the month, all the transactions that took place are summarized and posted in a …
A
general ledger
3
Q
which journal would you use in this situation?
- a client makes a electronic transfer into the business bank account -
A
a cash receipts journal
4
Q
when one account is debited another must be credited
what is this called ?
A
double entry price
5
Q
to ensure that the debit and credit are balanced we draw up a …
A
trial balance
6
Q
what does a balance sheet show ?
A
the financial position of the business
7
Q
what are the 6 steps of the accounting cycle ?
A
1 transactions
2 source documents
3 journals
4 general ledger
5 trial balance
6 financial statement
