is the system of collecting and processing transaction data and disseminating financial information to interested parties. It is the subsystem of management information system ( MIS)

(a)  

(a)   is a set of data gathering, analyzing, and reporting functions designed to provide management with the information it needs to carry out its function.

(a)   are the specific principles, bases, conventions, rules, and practices applied by an entity in preparing and presenting financial statements

The (a)   represents the steps or procedures in recording transactions and preparing financial statements.

____ and ____ - the accountant gathers information from source documents and determines the effect of the transactions of accounts

(a)  

(a)   the identified accountable events are recorded in the journals

(a)   information from the journal are transferred to the ledger

preparing the (a)   - the balances of the general ledger accounts are proved as the quality of debits and credits. This serve as the basis for adjusting entries.

preparing the (a)   - the accounts are updated as of the reporting date on accrual basis by recording accruals, expiration of deferrals, estimations and other events often not signaled by new source documents.

Preparing the (a)   or ( worksheet preparation) - the equality of debits and credits are rechecked after adjustment are made. It serves as the basis for the preparation of the financial statements.

Preparing the (a)   - information processed in the accounting system is communicated through users mainly through it.

this involves journalizing and posting closing entries and ruling the ledger

(a)  

Preparing the (a)   - the equality of debits and credits are again rechecked after the closing process.

recording the (a)   - this are usually made at the beginning of the next accounting period to simplify the recording of certain transactions in the next accounting period.

Accounting records of business entity:

these are the original source materials evidencing a transaction

e.g. sales invoice, official receipts, vouchers, statement of accounts etc.

(a)  

under this system, each transaction is recorded in two parts

debit and credit

(a)  

this concept views each transaction as having a two-fold effect on values.

a value received and value parted with

(a)  

this concept requires each transaction to be recorded in terms of equal debits and credits.

(a)  

Under the _____ _____ , profit or loss is computed as the difference between income and expense.

(a)  

under this system, each transaction is recorded through simple narrative. Transaction are not analyze in terms of debit and credits and is not inline with the PFRSs.

(a)  

Under ____ ___, income and expenses are recognized when earned or incurred.

(a)  

Under ___ _____ income and expenses are recognized when receive or paid regardless of when earned or incurred.

(a)  

a book of original entry used to record transactions other than those that are recorded in the special journals.

(a)  

a book of original entry used to record transactions of similar nature.

(a)  

Types of journal entries:

contains a single debit and a single credit

(a)  

Types of journal entries:

contains two or more debits or credits

(a)  

Types of journal entries:

entries made prior to the preparation of financial statements to update certain accounts so that they reflect correct balances as at the designated time.

(a)  

Types of journal entries:

entries made at the end of accounting period after all adjustments have been made to zero-out the balances of all nominal accounts and to update the retained earning accounts.

(a)  

Types of journal entries:

entries usually made on the first day of accounting period to reverse certain adjusting entries in the immediately preceding period.

(a)  

Types of journal entries:

entries made to correct accounting errors

(a)  

Types of journal entries:

entries made to transfer an amount from one account to another account that better describes the nature of the transaction being recorded.

(a)  

(a)   is the process of transferring data from the journal to the appropriate accounts in the ledger. The purpose of it is to classify the effects of transaction on specific asset, liability, equity, income and expense accounts in order to provide more meaningful information.

The (a)   is also called "book of secondary entries" or "book of final entries" is a systematic compilation of group of accounts.

contains all the accounts appearing in the trial balance.

(a)  

provides a breakdown of the balances of the controlling accounts.

(a)  

(a)   is the basic storage of information in accounting

e.g. cash, accounts receivable etc.

_____ of ____ is a list of all the accounts used by the entity. To promote comparability, account titles should conform to PFRSs and industry practices.

(a)  

A (a)   is a list of general ledger accounts and their balances. To check the equality of total debit and total credit

this trial balance is prepared before adjusting entries contains real, nominal, mixed accounts.

(a)  

this trial balance is prepared after adjusting entries contains real and nominal accounts.

(a)  

this trial balance is prepared after the closing process contains real accounts only.

(a)  

this error is committed when number of digits in an account is incorrectly increase of decrease

e.g. P 100 is recorded as P 1000

(a)  

this error is committed when digits in amount are interchanged

e.g. P 15,652 amount is recorded as P 15,265.

(a)