FAR SUMMARY

It is a step-by-step process of recording, classification, and summarization of economic transactions of a business.

(a)  

This is where the accountant gathers information from source documents and determines the impact of the transaction on the financial position.

(a)  

This is the process of recording the transactions in the appropriate journals.

(a)  

It is a chronological record of transactions. It is also known as the book of original entry.

(a)  

It is a journal where all transactions could be recorded.

(a)  

These are journals used in recording large numbers of like transactions.

(a)  

It is a special journal where only sales of merchandise on account are recorded

(a)  

It is a special journal where all types of cash receipts are recorded.

(a)  

It is a special journal used to record all purchases on account of merchandise, equipment, supplies, etc.

(a)  

It is a special journal where all payments of cash for any purpose are recorded.

(a)