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The initial stage of the accounting process includes creating supporting documents forfinancial transactions that have taken place. These documents may take the form of vouchers and will include information regarding the transaction including the date, value and the account it was paid in to or out of.
- Recording transactions
Using the information collated on the vouchers, the accountant will then transfer this information in to a book of accounts where other information about the company's transactions will be recorded in the form of journal entries.
- Classifying journal entries
The information recorded will be divided up under different headings. For instance, each set of information about one transaction will fall under two accounts or two records.
- Presenting financial statements
An accountant will usually find themselves doing the accounts for a company that needs to create statements to send out to suppliers or other business clients. Part of their job will be to create and summarize these statements in order to then create a Trial of Balance. This balanced information is then used to help a company balance its books before the end of the financial year. In addition, this will also include recordingany profits or losses.
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Four phases of accounting?
recording classifying summarizing interpreting
What are the purpose and phases accounting?
idenfying measuring recording classifying summarizing
What are the four phases of accounting and define each?
Following are four phases of accounting:Recording - Recording in journalClassifying - Classifieng to ledgersSummarizing - Summarizing to financial statementsInterpreting - Financial ratios etc.
Phases of accounting?
what are the phases of accounting?
Distinguish the four phases of accounting?
Four phases of accounting is as follows:RecordingClassifyingSummarizingInterpreting.
What are the four phases of accounting?
identifying measuring summarizing classifying
Four phases of accounting?
recording classifying summarizing interpreting
What are the purpose and phases accounting?
idenfying measuring recording classifying summarizing
4 phases of accounting and their definition?
The four phases of accounting are: identification and record, sorting and classification, summarizing and presentation, and interpretation. The first two involves creating a log of financial transactions and categorizing them. Summarizing is the creation of charts, while interpretation is coming up with solutions to increase profit.
What are the four phases of accounting and define each?
Following are four phases of accounting:Recording - Recording in journalClassifying - Classifieng to ledgersSummarizing - Summarizing to financial statementsInterpreting - Financial ratios etc.
Phases of accounting?
what are the phases of accounting?
Distinguish the four phases of accounting?
Four phases of accounting is as follows:RecordingClassifyingSummarizingInterpreting.
The 4 phases of accounting and their meaning?
four phases of accounting and their meaning
What are the 4 phases accounting and meaning?
There are 4 phases of accounting as follows:RecordingClassifyingSummarizingInterpration
What is summarizing in accounting?
The word summarizing used in the accounting field means to prepare the trial balance. This is basically balancing the books at the end of the month or year.
Different definitions of accounting by different authors?
Accounting is defined by the American Institute of Certified Public Accountants (AICPA) as "the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof."
What do you understand by cost accounting?
Cost accounting involves collecting, analyzing and summarizing various courses of action. Then, accounting advises the management on what to do.
