The equality of debits and credits are rechecked after adjusments are made. It serves as basis for the preparation of the financial statements.

These are accounts that are deducted from a related account, e.g., accumulated depreciation

This involves journalizing and posting closing entries and ruling the ledger. Temporary accounts (or nominal accounts) are closed and the resulting profit or loss is transferred to an equity account.

Entries made to correct accounting errors

These are accounts that are added to a related account., e.g, premium on bonds payable.

These are the means by which the information accumulated and processed in financial accounting is periodically communicated to the users. It is the end products of the accounting process.

It is a list of general ledger accounts and their balances. It is prepared to check the equality of total debits and total credits in the ledger.

It is the process of identifying, measuring and communicating economic information to permit informed judgements and decions by users of the information.

It commited when the digits in an mount are interchanged.

It is also called the book of secondary entries or book of final entries. It is a systematic compilation of a group of accounts.

Accounting information system is a ________ of Management Information System (MIS)

What are the major components of an MIS?

What are the components of accounting information?

Under this method, prepayments of expenses are initially debited to an asset account. At the end of the period, the incurred portion is recognized as expense while the unused portion remains as asset.

One which containw two or more debits or creditsm

One which contains a single debit and a single credit element.

According to them, Accounting is a process of identifying, measuring and communicating economic information to permit informed judgements and decisions by users of the information.

Used to record purchases of inventory on account.

Under this method, prepyments of expenses are initially debited to an expense account. At the end of the period, the unused portion is recognized as asset while thr incured portion remains as expense.

Preparing the unadjusted trial balance, adjusted trial balance, post-closing trial balance and recording reversing entries are optional.

These are the original source materials evidencing a transaction. Ex. sales invoice, offical receipts, vouchers, statements of account, etc.

Entries made prior to the preparation of financial statements to update certin accounts so that they reflect correct balances as at the designated time.

Under this method, advanced collections of income are initially credited to a liability account. At the end of the period, the earned portion is recognized as income while the unearned portion remains as liability

These are accounts that are closed at the end of the accounting period.

The accounts are updated as of the reporting date in an accrual basis by recording accruals, expiration of deferrals, estimations and other events often not signaled by new source documents.

Under this method, advanced collections of income are initially credited to a income account. At the end of the period, the earned portion is recognized as income while the unearned portion remains as income

The balances of the general ledger accounts are proved as to the equality of debits and credits. It serves as basis for adjusting entries.

A book of original entry used to record transactions other than those that are recorded in the special journals. If special journals are not utilized, all transactions are recorded in this type of journal.

This is prepared after adjustin entries. It contains real and nominal accounts.

Provides a breakdown of the balances of controlling accounts.

The following are the accounting processes, EXCEPT:

It is a set of data gathering, analyzing ad reporting functions it needs to carry out its functions.

It is also called the book of original entry, it is a formal record where transactions are initially recorded chronological through journal entries.

This concept views each transactiom as having a two-fold effect on values- a value received and a value parted with and each transaction is recorded using at least two accounts.

List of all the accounts used by the entity.

These are entries made prior to the preparation of financial statements to update certain accounts so that they reflect correct balances as of the designated time.

Income and expenses are recognized when received or paid, regardless of when earned or incurred.

A book of original entry used to record transactions of a similar nature.

The identified accountable events are recorded in the journals

It is committed when the number of digits in an amount is incorrectly increased or decreased.

These are the means by which the information processed is communicated to users.

Under this system, each transaction is recorded in two parts- debit and credit.

It is the system of collecting and processing transaction data and disseminating financial information to interested parties.

Under this, income and expensesnare recognized when earned or inccured, regardless of when cash is received or paid.

The accountant gathers information from source documents and determines the effect of the transactions on the accounts.

Entries made to transfer an amount from one account to another account that better describes the nature of the transaction being recorded.

This is prepared before adjusting entries. It contains real, nominal and mixed accounts.

Contains all the accounts appearing in the trial balance.

It is prepared after the closing process. It contains real accounts only.

It is usually made at the beginning of the next accounting period to simplify the recording of certain transactions in the next accounting period.

This concept requires each transaction to be recorded in terms of equal debits and credits.

The equality of debits and credits are again rechecked after the closing process.

Information from the journal are transferred to the ledger.

These are the specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements.

It is the basis storage of information in accounting.

It used in the system to expedite work, to provide controls, and pevent fraud and errors.

Under this, the difference between income and expenses is computed.

It is one which consist of a group of accounts with similar nature.

It is the process of recording transactions in the journak by means of journal entries.

Used to record all transactions involving payments of cash

Used to record sales on account

Accounts that are not closed at the end of the accounting period. These accounts are shown in the statement of financial position.

These are necessary to gather, process, store and transmit financial and other information.

Under this system, each transaction is recorded through simple narrative. Transactions are not analyzed in terms of debits and credits. Profit or loss for the period is determined through the "capital maintenance approach" or by comparing the beginning and ending balances of equity.

It is the process of transferring data from the journal to the appropriate accounts in the ledger. The purpose of it is to classify the effects of transactions on specific asset, liability, equity, income and expense accounts in order to provide more meaningful information.

Used to record all transactions involving receipts of cash.

Set of interrelated activities involving the originating, processing and reporting of financial ad related information.

Entries usually made on the first day of the accounting period to reverse certain adjusting entries in the immediately preceing period.

These are accounts that have both real and nominal account components.

It is an analytical device used to facilitate the gathering of data for adjustments and the preparation of financial statemenrs and closing entries.

It represent the steps or procedures used in recording transactions and preparing financial statement. It implements the accounting process.

Entries made at the end of the accounting period after all adjustments have been made to zero-out the balances of all nominal accounts and to update the retained earnings account