Steps in the Recording Process

Steps in the Recording Process - Steps in the Recording...

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Steps in the Recording Process Although it is possible to enter transaction information directly into the accounts, few businesses do so. Practically every business uses these basic steps in the recording process: 1. Analyze each tra on the accounts. 2. Enter the transaction information in a journal. 3. Transfer the journal information to the appropriate accounts i accounts). Ethics Note Business documents provide evidence that transactions actually occurred. International Outsourcing Services, LLC, was accused of submitting fraudulent documents (store coupons) to companies such as Kraft Foods and PepsiCo for reimbursement of as much as $250 million. Ensuring that all recorded transactions are backed up by proper business documents reduces the likelihood of fraudulent activity. The actual sequence of events begins with the transaction. Evidence of the transaction comes in the form of a source document , such as a sales slip, a check, a bill, or a cash register tape. This evidence is analyzed to determine the effect of the transaction on specific accounts. The
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Steps in the Recording Process - Steps in the Recording...

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