Unit 4: The Accounting Cycle

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UNIT 4: ACCOUNTING CYCLE

WHAT ARE SOURCE DOCUMENTS?

-invoice -receipt -deposit slip -check counterfoil -statement -payment confirmation

-the 1st documents that exist relating to a transaction

-serve as proof for a transaction(include date and time)

INVOICES:

-list goods or services provided and their prices

-normally relate to credit transactions

-suppliers normally send an invoice with goods(or once services have been delivered)

-indicate payment terms(time)

-"bills"

RECEIPTS:

-confirm that services or goods have been received

-normally relate to cash transactions

DEPOSIT SLIP:

-proof that cash, including currency and checks, has been deposited in a bank account

CHECK COUNTERFOIL:

-this is the part of the check kept by the drawer(writer) of the check as a record of the transaction

STATEMENT:

-a report showing

-the amount owned by one business to another

-details of transactions between the two businesses

PAYMENT CONFIRMATION:

-proof of internet transactions

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