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    Job Aid - Accounting's Key Activities

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    Zia Ahmad
    The document outlines the key activities of accounting - identifying transactions, recording transactions, and reporting transactions. It describes how transactions are identified if they can be expressed in monetary terms. Transactions are then recorded using either single or double entry bookkeeping systems, with most businesses using double entry bookkeeping. Financial statements, including the balance sheet, income statement, and cash flow statement, are prepared based on the recorded accounting data and shared with internal and external stakeholders.

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    Job Aid - Accounting's Key Activities

    Uploaded by

    Zia Ahmad
    37 views2 pages
    The document outlines the key activities of accounting - identifying transactions, recording transactions, and reporting transactions. It describes how transactions are identified if they can be expressed in monetary terms. Transactions are then recorded using either single or double entry bookkeeping systems, with most businesses using double entry bookkeeping. Financial statements, including the balance sheet, income statement, and cash flow statement, are prepared based on the recorded accounting data and shared with internal and external stakeholders.

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    Job Aid_ Accounting's Key Activities

    Original Title

    Job Aid_ Accounting's Key Activities

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    The document outlines the key activities of accounting - identifying transactions, recording transactions, and reporting transactions. It describes how transactions are identified if they can be expressed in monetary terms. Transactions are then recorded using either single or double entry bookkeeping systems, with most businesses using double entry bookkeeping. Financial statements, including the balance sheet, income statement, and cash flow statement, are prepared based on the recorded accounting data and shared with internal and external stakeholders.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    37 views2 pages

    Job Aid - Accounting's Key Activities

    Uploaded by

    Zia Ahmad
    The document outlines the key activities of accounting - identifying transactions, recording transactions, and reporting transactions. It describes how transactions are identified if they can be expressed in monetary terms. Transactions are then recorded using either single or double entry bookkeeping systems, with most businesses using double entry bookkeeping. Financial statements, including the balance sheet, income statement, and cash flow statement, are prepared based on the recorded accounting data and shared with internal and external stakeholders.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 2

    12/20/2016

    JobAid:Accounting'sKeyActivities

    JobAid

    Accounting'sKeyActivities
    Purpose:Usethisjobaidtoreviewthekeyactivitiesthatformthecoreofaccounting.
    Atitsroot,accountingconsistsofthreeactivitiesidentifying,recording,andreporting
    accountinginformation.Theaccountingdataproducedisusedtopreparefinancial
    statementsthatcommunicateanorganization'sfinancialposition.Knowledgeofthese
    activitieswillhelpyouunderstandandanalyzetheinformationpresentedinthefinancial
    statements.
    Accounting'sKeyActivities
    Identify
    transactions

    Foraneconomicactivitytobeconsideredatransactionitmustbepossibleto
    expressitinmonetaryterms.

    Record
    transactions

    Therearetwosystemsinpracticetorecordtransactions:singleentryand
    doubleentrybookkeeping.
    Mostbusinessesusedoubleentrybookkeepingbecauseitprovidesamore
    completeandaccuratepictureofthefinancialpositionofacompany.The
    doubleentrybookkeepingsystemrepresentsthetwofoldeffectofeach
    transaction.Whenatransactiontakesplaceitimpactsatleasttwodifferent
    accounts,oneasadebitandtheotherasacredit.Thereforeeach
    transactionisrecordedtwiceinthissystem.
    Beforetransactionscanberecorded:
    they'reanalyzedandclassifiedtodeterminewhichaccountsareaffected,
    and
    it'sdeterminedhowtheaccountsareaffected(forexample,whichaccount
    willbecreditedandwhichwillbedebited)
    Journalsandledgersareusedtorecordtransactions.Transactionsare
    recordedinthejournalfirst,orjournalized,andthenpostedtotherelevant
    accountsintheledger.
    Accountshaveadebitsiderepresentedintheleftcolumnandacreditside
    representedintherightcolumn.Forthisreasontheyaresometimesreferred
    toasTaccounts.
    Everytransactionaffectstwoaccounts,oneasadebitandtheotherasa
    credit.Sometransactionsmayaffectmorethantwoaccounts,buttheirtotal
    creditanddebittotalsalwaysmatch.
    Trialbalancesmustbeachievedbeforefinancialstatementscanbe
    prepared.

    Report
    transactions

    Financialstatementsarepreparedbasedontheaccountingdata.Thethree
    mostoftenpreparedfinancialstatementsare:

    http://xlibrary.skillport.com/courseware/Content/cca/fin_03_a01_bs_enus/output/html/jafin_03_a01_bs_enust301.html

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    12/20/2016

    JobAid:Accounting'sKeyActivities

    BalanceSheetCommunicatesthebusiness'sfinancialpositionata
    certainpointintime,includingassets,liabilities,andequityattheendofthe
    financialperiod
    IncomeStatementReportsprofitorlossesasthedifferencebetween
    revenuesandexpensesduringaspecifiedaccountingperiod
    CashFlowStatementProvideshistoricalinformationonthecashflowin
    andoutofabusinessduringaspecifiedaccountingperiod
    Thesestatementsaresharedwithinternalandexternalstakeholders,who
    usetheinformationtomakebusinessdecisions.

    Course:BasicAccountingPrinciplesandFramework
    Topic:UnderstandingAccounting

    Copyright2010SkillSoft.Allrightsreserved.
    SkillSoftandtheSkillSoftlogoaretrademarksorregisteredtrademarks
    ofSkillSoftintheUnitedStatesandcertainothercountries.
    Allotherlogosortrademarksarethepropertyoftheirrespectiveowners.

    http://xlibrary.skillport.com/courseware/Content/cca/fin_03_a01_bs_enus/output/html/jafin_03_a01_bs_enust301.html

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