Purpose and status of the framework
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- RECORDING PHASE
| PAGE FINANCIAL ACCOUNTING AND REPORTING ACCOUNTING PROCESSSteps in the Accounting Cycle – There are 9 basic steps in the accounting cycle, which includes 2 phases known as recording and summarizing.RECORDING PHASEAnalyzing the transaction (business document)- This is where the accountant gathers information from source documents and determines the impact of the transaction on the financial position as represented by the equation “assets equals liabilities plus equity”. Journalizing – This is the process of recording the transactions in the appropriate journals. A journal is a chronological record of transactions also known as the book of original entry. Although all transactions could be recorded in the general journal, it is more efficient to use special journals in recording a large number of like transactions. Special journals that enterprises usually use are: Sales Journal – Only sales of merchandise on account are recorded. Download 23.62 Kb. Share with your friends:
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