Accounting is the recording of

financial transactions along

with storing, sorting,
retrieving, summarizing, and
presenting the results in
various reports and analyses.
Storing - Journal
Sorting - General
Ledger
Retrieving - Trial Balance
Summarizing - Financial
Statement
SFP, SCI,
SCF, SCE
Double-entry bookkeeping,
in accounting, is a system
of book keeping where
every entry to an account
requires a corresponding
and opposite entry to a
different account. The
double-entry has two equal
and corresponding sides
known as debit and credit.
An accounting
journal is the
official book of a
business in which
the transactions
are recorded in a
chronological
order.
A general
ledger is the
master set of
accounts that
summarize all
transactions
occurring within
an entity.
The journal consists
of raw accounting
entries that record
business
transactions, in
sequential order by
date. The general
ledger is more
formalized and
tracks five key
accounting items:
assets, liabilities,
owner’s capital,
revenues, and
expenses.
 A trial
balance is a
report that lists
the balances of
all general
ledger accounts
of a company at
a certain point
in time.
 Financial statements are reports prepared by a company’s
management to present the financial performance and position at
a point in time.
Statement of Financial Position, also known as the Balance Sheet, presents the financial
position of an entity at a given date. It is comprised of the three elements: Assets, Liabilities
and Equity.
A statement of comprehensive income is a financial statement that includes both
standard income and other comprehensive income. To create one, start with a
standard income statement, add a section for other comprehensive income, then
show the total of both.
Cash Flow Statement (CFS) is a summary of cash inflows and outflows that brought cash to its ending balance. The CFS is a
formal statements that classifies cash receipt (cash inflow) and cash payment (cash outflows) into operating, investing, and
financing activities of an entity during a period. This financial statement shows the net increase or decrease in cash and the
cash balance at the end of the period.
The Statement of Changes in Equity (SCE) is the financial
statement that represent movement of the owner’s equity
(capital) account during the reporting period. It reflects the
ending balance of the owner’s equity.