In general terms, an accounting system is a system where transactions and events are reliably processed and summarized into useful financial statements and reports. Whether this system is manual or automated, the heart of the system will contain the basic processing tools: accounts, debits and credits, journals, and the general ledger. This chapter will provide insight into these tools and the general structure of a typical accounting system.
Cost Accounting Solution Manual By Mejorada Pdf
Usually, a recordable transaction will be evidenced by a source document. A disbursement will be supported by the issuance of a check. A sale might be supported by an invoice issued to a customer. A time report may support payroll costs. A tax statement may document the amount paid for taxes. A cash register tape may show cash sales. A bank deposit slip may show collections of customer receivables. Suffice it to say, there are many potential source documents, and this is just a small sample. Source documents usually serve as the trigger for initiating the recording of a transaction. The source documents are analyzed to determine the nature of a transaction and what accounts are impacted. Source documents should be retained (perhaps in electronic form) as an important part of the records supporting the various debits and credits that are entered into the accounting records. To illustrate, assume that Jill Aoki is an architect. Concurrent with delivering completed blueprints to one of her clients, she also prepared and presented an invoice for $2,500. The invoice is the source document evidencing the completed work for which payment is now due. Therefore, Accounts Receivable is to be increased (debited) and Revenues must be increased (credited). When her client pays, the resulting bank deposit receipt will provide evidence for an entry to debit Cash (increased) and credit Accounts Receivable (decreased).
honenac 19191a764c -accounting-solution-manual-by-mejorada-pdf-checked[ -accounting-solution-manual-by-mejorada-pdf-checked ][ -accounting-solution-manual-by-mejorada-pdf-checked ][ -accounting-solution-manual-by-mejorada-pdf-checked ]link= -accounting-solution-manual-by-mejorada-pdf-checkedlink= -accounting-solution-manual-by-mejorada-pdf-checkedlink= -accounting-solution-manual-by-mejorada-pdf-checked 2ff7e9595c
Comments