Overview
The accounting process is essential for businesses to maintain accurate financial records and make informed decisions. It involves several steps, including recording transactions, classifying accounts, summarizing data, and preparing financial statements. Each step builds on the previous one, ensuri...
Key Terms
Example: Cash, inventory, and property.
Example: Loans and accounts payable.
Example: Common stock and retained earnings.
Example: Sales journal and purchase journal.
Example: Debiting cash when receiving payment.
Example: Crediting revenue when a sale is made.