Unit 4: The Accounting Cycle

UNIT 4: ACCOUNTING CYCLE

WHAT ARE SOURCE DOCUMENTS?-invoice -receipt -deposit slip -check counterfoil -statement -payment confirmation-the 1st documents that exist relating to a transaction-serve as proof for a transaction(include date and time)

INVOICES:-list goods or services provided and their prices-normally relate to credit transactions-suppliers normally send an invoice with goods(or once services have been delivered)-indicate payment terms(time)-"bills"

RECEIPTS:-confirm that services or goods have been received-normally relate to cash transactions

DEPOSIT SLIP:-proof that cash, including currency and checks, has been deposited in a bank account

CHECK COUNTERFOIL:-this is the part of the check kept by the drawer(writer) of the check as a record of the transaction

STATEMENT:-a report showing      -the amount owned by one business to another      -details of transactions between the two businesses

PAYMENT CONFIRMATION:-proof of internet transactions

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