Debit and credit don't mean anything

Self-Study Session 1
These are all under the
Optional worksheet preparation Optional Debit and Credit special, it's just that debit means
Each accounting period
"left" and credit means "right"
Steps in the follows a cycle, which is
Accounting Cycle
called the accounting cycle
Summarizes the accounts
Journalizing and posting Preparing Journalizing and Preparing financial Journalize and posting Worksheet preparation Trial balance preparation
from general ledger
Posting to the general ledger Analyze the business
reversing entries post-closing trial posting closing entries statement adjusting entries transaction and journalize it
balance Multicolumn devised to assemble the accounting datas used List of schedule of open accounts in the Posting in the general journal
Reversing entries are special entries recorded at the beginning Closing of the books on the last day Summarizes the recorded and Periodicity // Time Period
in the adjustment process, financial statements general ledger with their account balance Refers to the series of steps
of every accounting period to refer some of the adjusting entires After closing the books, only A, L, and Process of transferring journal Chronological recording of the business transaction
of the current accounting period classified data in the four Need for proper timing is the reason why preparation and closing entries easier and more in the book called the general journal performed to accomplish the
Capital are left open in the general Summarizes all the accounts entires to the ledger account accounting process
made on the prior period basic financial reports accountants thought of a convenient assumption of convenient
ledger of the company Setting the balances of the income in the general ledger Ledger, AKA, book of final entry Journals are basically daily
Done for convenience and consistency and expense back to zero Income Statement dividing the life of a business into time periods A temporary accounting record recording of a business transaction Performs task such as recording,
All real accounts balance at the end of aka reporting or accounting period Prepared to verify the equality of debits All of the accounts are listed
Used for accrual adjustments and Income and expense accounts Profit and losses It shows the effects of debit and classifying, summarizing
the accounting period covered and credit in the ledger at the end of each Includes the changes in
for deferral of a business Required to accomplish every account balance credit on each transaction
Nominal or temporary accounts accounting period
the 5th step which is It's summarized into at least 4
Switches the debit and credit of a Statement of Changes in Equity Open Account Important to know the type of ownership and form
adjusting the books Characteristic of a Trial Balance basic financial report
These are closed in a temporary of business organization according to activity
previous adjusting entry Means that there is an amount
account called income summary account Summary of changes in Accrual Basis It is a list of accounts posted in the ledger and has an
owner's capital existing balance
Service business renders service
Recognizing expense before payment, Its unclassified; it does not
Statement of Financial Position Two Forms of General Ledger Merchandising engages in buying and
recognizing income before receipt, pay for state whether an account is an Income Statement (statement Statement of Statement of Cash flows statement
selling of finished goods
What the business is worth in terms expense before it is incurred, or received asset, liability or equity Running Balance Form of comprehensive income) changes in equity financial position
of the properties it owns, IOUs, and payment before it is earned Manufacturing business activity
Accounts listed are normally Standard Form
investment of the owners Required at the end of each account period engaged in production
those with open balance
to recognize on an accrual basis revenues T-Accounts
Statement of cash flows and expenses for the period Accounts are listed
Reports the firm's receipt and Types of Accrued Accounting in ledger orders
disbursement of cash Accrued Income
Operating Accrued Expense
Investing Prepaid Expense
Financing Bad Debts Expense
Depreciation Expense