Unit 4 The Accounting Cycle

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4-1 source documents

invoice

receipt

deposit slip

check counter

why source documents:

first documents that exist relating to a transaction

serve as proof for a transaction include data and time

Invoices: normally relate to credit transactions list goods or services provided and their prices

Receipts: goods have been received

Deposit slip: deposited in a bank account

Check counterfoil: drawer (writer) keeps the check recorded to the transactions

Statement: a report of showing the amount owed by one business to another details transactions between the two businesses

4-5

trial balance:

complete trial balances prior to creating financial

shows profit or loss of business

includes income and expenses

Accounting period

cash payments:

a statement report of flows both in and out of the business

includes investing, operating, financing and net increase

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