Professional Documents
Culture Documents
Accounts
Accounts
Dividend income is income received from ownership Income Taxes Payable is income taxes due including
shares in a corporation. A dividend is a distribution to a current portion of deferred taxes.
corporations stockholders usually in cash;
Equity represents the residual claims of owners Inventories are products on hand for sale to customers
Expenses represent the outflow of assets (or increases Journal is a book where all transactions are initially
in liabilities) due to a company’s operating activities. recorded.
Financial statements report the business activities Journal entry are the logging of business transactions
during the year and the financial condition at the end of and their monetary value into the t-accounts of the
the year. It is also the presentation of financial data accounting journal as either debits or credits. A journal
including BALANCE SHEETS, INCOME STATEMENTS and entry is usually backed up with a piece of paper; a
STATEMENTS OF CASH FLOW, or any supporting receipt, a bill, an invoice, or some other direct record of
statement that is intended to communicate an entity's the transaction; making them easy to record and to
financial position at a point in time and its results of maintain traceability for each transaction.
operations for a period then ended.
Preliminary Trial Balance is a listing of the accounts Salaries/wages expense is an account title used to
in the general ledger and their balances as of a specified record salaries, wages, and benefits an employee
date. A trial balance is usually prepared at the end of an receives from an employer.
accounting period and is used to see if additional
adjustments are required to any of the balances.
Sales Journal This is a receivables system involves a
Sales Journal -- in which all invoices outgoing to
Posting is the process of transferring figures from the customers are recorded.
journal to the ledger accounts
Journalizing of transactions
1.1 Prepared chart of accounts
Posting of transactions
1.1 Prepared ledger