Week 2 Flashcards
What is step 1 of book keeping cycle
Collect and Analyze
Step 1 is collect and analyze, describe this step
Collect receipts, invoices and bank statements
When meeting with new clients what should you go through ?
Checklist of all documents needed
Name the 4 financial statemnts
Income, Balance Sheet, Statement of Equity, Statement of Cash flow
Step 4 of the accounting cycle ?
Prepare accounting adjustments
Describe Preparing accounting adjustments
look for Deferrals, Accruals, Missing Transactions and tax adjustments
Describe Deferrals and what you do when preparing accounting adjustments
Services that have been paid for but the service hasn’t been completed. So you need to remove transactions that happened in a different period
Describe Accruals
Future payments or expenses
What is Step 5 of accounting cycle
An adjusted trail balance
What is step 3 of accounting cycle
Prepare and unadjusted trail balance
Step 2 of accounting cycle
post transactions to the journal
what is step 6 of accounting cycle and name them
prepare financial documents, balance, owners equity, income statement, cash flow statement
What document gives expenses and revenue
income statement
What document gives Owners capital change
the statement of equity
What document gives assets, liabilities and equity
balance sheet
