Jenna R.

Culajara
1. Explain accounting information system

• An accounting information system (AIS) is a system that collects, stores, processes, and
reports financial and accounting data for an organization. It integrates various components such
as databases, software applications, procedures, and controls to manage financial transactions
and produce financial statements. AIS helps businesses track their financial activities, manage
resources, ensure compliance with regulations, and make informed decisions based on accurate
and timely financial information.
2. Describe and paste a sample picture of the following Business Documents

• A. SALES INVOICE/PURCHASE INVOICE - The purchase invoice tracks a company’s

expenses and cash outflow. On the other hand, a sales invoice is issued by the seller, and it
shows when they expect the payment

• B. OFFICIAL RECEIPT -An official receipt is an accounting record documenting a

successful sale transaction, which means, this is issued after payment for goods or services
has been received by the seller from the buyer.
• C. CHECK- typically refers to reviewing various paperwork or records related to a business.
This can include financial statements, invoices, contracts, purchase orders, employee records,
and other relevant documents to ensure accuracy, compliance, and completeness. It involves
verifying information, detecting errors or discrepancies, and ensuring that the documents
adhere to organizational policies and legal requirements.

• D. CASH REGISTER SLIP- When you go into a shop and make a cash purchase you will
usually get a cash register / till slip in receipt for what you buy
• E. BANK DEPOSIT SLIP- A deposit slip is a small paper form that a bank customer
includes when depositing funds into a bank account. A deposit slip states the date, the name of
the depositor, the depositor's account number, and the amounts being deposited

• F. BANK WITHDRAWAL SLIP- A withdrawal slip is a written request to the bank to pay
the account holder the specified sum. The funds are deducted from the specified account
number. A bank withdrawal slip, like a deposit slip, is a record of your banking transaction. It
makes it easier for the bank to keep track of your withdrawals.

• G. STATEMENT OF ACCOUNT – A statement of accounts is a document that reflects all

transactions that took place between you and a particular customer for a given period of time.
Generally business owners send statements of accounts to their customers to let them know how
much they owe for sales that took place on credit during that period.
• H. PROMISSORY NOTE – The promissory note is a legal document that is signed by a
borrower who promises to pay a debt in the form and manner as described in the note. The note
may include a personal guarantee, which is a promise by the borrower to pay the lender
• I. CASH VOUCHER- A cash voucher is a document that serves as proof of a cash
transaction. It is typically used in accounting and bookkeeping to record and validate cash
payments made for various expenses, such as office supplies, utility bills, or other
miscellaneous expenses

• J. PETTY CASH VOUCHER - A petty cash voucher is a document that records the
expenses of an organization. Petty cash funds are small amounts for incidental expenses like
office supplies and employee reimbursements. It help track and document expenses paid
from the petty cash fund.
3. What is Accounting cycle?

• The accounting cycle is a collective process of identifying, analyzing, and recording the
accounting events of a company. It is a standard 8-step process that begins when a transaction
occurs and ends with its inclusion in the financial statements and the closing of the books.
4. Enumerate and explain the step in Accounting cycle.

Step 1: Identify Transactions

The first step involves identifying and analyzing business transactions, which could include sales,
purchases, expenses, and other financial activities.

Step 2: Recording Transactions

Once transactions are identified, they are recorded in the appropriate journals such as the general
journal, sales journal, purchase journal, or cash disbursement journal.

Step 3: Posting to Ledger

After recording transactions in journals, the next step is to post the entries to the general
ledger. Each account has its own ledger page, where individual transactions are summarized.

Step 4: Adjusting Entries

Adjusting entries are made at the end of the accounting period to ensure that all revenues and
expenses are recorded in the correct period. This includes entries for accruals, deferrals,
depreciation, and other adjustments.

Step 5: Preparing Trial Balance

A trial balance is prepared to ensure that debits equal credits after posting all transactions to the
ledger. It helps in identifying errors and ensuring accuracy before preparing financial
statements.

Step 6: Preparing Financial Statements

Based on the adjusted trial balance, financial statements such as the income statement, balance
sheet, and statement of cash flows are prepared to provide an overview of the company's
financial performance and position.
 Step 7: Closing Entries

Closing entries are made to transfer the balances of temporary accounts (revenue, expense,
and dividend accounts) to the retained earnings account in order to prepare the accounts for the
next accounting period.

Step 8: Post-Closing Trial Balance

After closing entries are made, a post-closing trial balance is prepared to ensure that all
temporary accounts have been closed and only permanent accounts remain open.