Professional Documents
Culture Documents
ACCTG 112 Notes
ACCTG 112 Notes
01
Accounting as a
Language of
Business
Topic 1
4 Phases of Accounting
Recording Summarizing
To know the I III Realizing the items
transactions within the into reports.
accounting period.
Classifying Interpreting
To know which items
II IV Giving a conclusion to
the operations/financial
belong to a particular
standing of a company.
category.
Phases of Accounting
Recording Summarizing
● Also termed as ● Uses Trial Balance
Journalizing ● Financial Results
● Uses General Journal of a Company
(Book of Original Entry)
Classifying Interpreting
● Also termed as Posting ● Making Economic
● Uses General Ledger Decisions
(Book of Final Entry) ● Reporting to the
higher-ups of the company
Summarizing Notes
Financial Statements
Used: Debit Credit
● Income Statement Value Received Value Parted
● Balance Sheet with
● Statement of Changes in
Owner’s Equity
● Statement of Cash Flow
02
Accounting as a
Service Activity
Topic 2
Accounting
● A service activity
● Functions to provide quantitative information;
● Primarily financial in nature which involves
economic activities/entities;
● Intended for making economic decisions
3 Points of Accounting