Notes
Unit 4: The Accounting Cycle
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Invoices:
-Normally relate to credit transactions.
-Lists goods or services provided and their prices.
-Suppliers normally send an invoice with goods (or once services have been delivered).
-Indicate payment terms.
-"Bills"
Source Documents:
-First document that exists relating to a transaction.
Evidence of the transaction taking place.
-Includes date and time.
-Types:
-Invoice.
-Receipt.
-Deposit Slip
-Check Counterfoil
-Statement
-Payment Confirmation.
Receipts:
-Confirm that goods or services have been received.
-Normally relate to cash transactions.
Deposit Slip:
-Proof that cash has been deposited in a bank account.
Check Counterfoil
-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 owed by one business to another.
-Details of transactions between the two businesses.
Payment Confirmation:
-Used for Internet transactions.
-"Receipt" when you buy something online.
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- 4-1: Source Documents 4-2: Accounting Journals 4-3: T-accounts 4-4: Trial Balance 4-5: Financial Statements
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