2/21/25
Terminology #2 • Ledger – book containing the accounts • General Ledger – collection of all accounts • Subsidiary Ledger – details of given or specific general ledger account • Journal – book of original entry of initial records of transactions and selected other events • Posting – process of transferring from book of original entry to the ledgers
15
Terminology #3 • Trial Balance – list of all open accounts in the ledger and their balances • Adjusting entries – entries at the end of accounting period to bring all account balances up to date on an accrual basis • Closing entries – reduction of all nominal accounts to zero and transferring the net income/loss to equity account. • Financial Statements – final summarization of accounting data with three statements: o Balance sheet – financial condition at the end of the period o Income statement – the results of operations during the period o Cash flow statement – the cash provided/used by operating, financing and investing activities.
16
8
Made with FlippingBook - Online catalogs