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Accounting

THE ACCOUNTING INFORMATION SYSTEM

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Accounting information must be accumulated and summarized before it can be communicated
and analysed. In this chapter, we will discuss the steps involved in the accounting cycle. We will
emphasize the subject of adjusting entries. Throughout an accounting period, cash receipts and
cash disbursements are recorded. At the end of the accounting period, adjusting entries are
required so that revenues and expenses are reflected on the accrual basis of accounting.
Adjusting entries are simply entries required to bring account balances up to date. The failure to
record proper adjustments will cause errors on both the income statement and the balance
sheet.

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Series Title: THE ACCOUNTING INFORMATION SYSTEM
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Publisher: : ., 2010
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Language: English
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Classification: NONE
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Subject(s): Accounting
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