Unit 4 The Accounting Cycle

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4-1 source documents 4-2 accounting journals 4-3 t-accounts 4-4 trial balance 4-5 financial statements
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4-1 source documentsinvoicereceiptdeposit slipcheck counterwhy source documents:first documents that exist relating to a transaction serve as proof for a transaction include data and time

Invoices: normally relate to credit transactions list goods or services provided and their prices Receipts: goods have been received Deposit slip: deposited in a bank account Check counterfoil: drawer (writer) keeps the check recorded to the transactions Statement: a report of showing the amount owed by one business to another details transactions between the two businesses 

4-5trial balance:     complete trial balances prior to creating financial shows profit or loss of business  includes income and expenses Accounting period

cash payments:  a statement report of flows both in and out of the business includes investing, operating, financing and net increase  

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