BUSINESS MANAGEMENT Lecture Notes - Lecture 3: Barter, Financial Statement, General Ledger

• School: Cavite State University
• Department: Business
• Course: BUSINESS MANAGEMENT

Document Summary

One of the most important aspects of accounting is records management, also known as bookkeeping. The process of recording transactions and events in an accounting system is known as records management. Accounting principles rely on accurate and complete records, so records management is the foundation of accounting. The purchase of a company car is an example of an accounting event. In the general ledger, the accounting or recording department posts the vehicle purchase as a debit to the vehicle investment account and a credit to the cash or liability account. This information can be used by computerized accounting systems to report assets and liabilities. Accounting records were manually recorded on ledger paper prior to the widespread use of computers and servers. To generate assembly reports and financial statements, each account was manually transferred from the general ledger to accounts. Accounting systems and records management procedures are changing as a result of modern technology.