Courtney Graver ESSAY AC107 - Courtney Graver AC 107 Ten Steps of the Accounting 1 Analyzing and Classify Identifying the transactions from the events

Courtney Graver ESSAY AC107 - Courtney Graver AC 107 Ten...

This preview shows page 1 - 2 out of 3 pages.

Courtney Graver AC 107 Ten Steps of the Accounting 1) Analyzing and Classify Identifying the transactions from the events is the first step of accounting process. Events are analyzed to find the impact on the financial position or to be more specific the impacts on the accounting equation. Documents such as; a receipt, an invoice, a depreciation schedule, and a bank statement etc. provides evidence that an economic event has actually occurred. 2) Journalizing the Transaction Transactions having an impact on the financial position of a business are recorded in the general journal. In the general journal, the transactions are recorded as a debit and a credit in monetary terms with the date and short description about the cause of the particular economic event. 3) Posting from the Journals to the General Ledger Transactions recorded in the general journal are then posted to the general ledger accounts. The accounts classify accounting data into certain categories and they are recorded in general journal entries according to that classification. Depending on the frequency of the
Image of page 1
Image of page 2

You've reached the end of your free preview.

Want to read all 3 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture