Management and Organizational Studies 1023A/B Lecture Notes - Lecture 3: General Journal, Trial Balance, Financial Statement

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Barry Hawn

Document Summary

System of collecting and processing transaction data and communicating financial information. Can be widely based on factors such as: Economic events that must be recorded in the financial statements. Not all events are recorded and reported as accounting transactions. Only those that change assets, liabilities or shareholders" equity. Discussing a product design with a potential customer. Entries are made in the following accounts: debit. An individual accounting record of increases and decreases in a specific asset, liability or shareholders" equity item. Three parts: title of the account, a left or debit side, a right or credit side. Accounting record where the transactions are recorded in chronological order. Entire group of accounts maintained by a company. List of accounts is called a chart of accounts. Contains all the asset, liability, and shareholders" equity accounts. Posting is the process of transferring information from the general journal to the ledge accounts. Complete collection of all the accounts of a company.