The Accounting Cycle

1. Source docs are invoices, receipts, deposit slips, check counterfoils, statements, and payment confirmations.

2. The first docs that exist relating to a transactions serve as proof for a transactions.

3. Invoices normally relate to credit transactions and they list goods or services and their prices (bills).

4. Receipts confirm that a service or goods has been received. They normally to cash transactions.

5. Deposit slips prove that cash has been deposited in a bank account.

6. Check counterfoils are the part of the check that the writer keeps for his records.

7. Statements are reports that show the amount owed by a business.

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