PHA 305: Managing Money
Fiscal/financial events that are recorded
A defined period of time over which transactions are recorded (most common is 1 yr)
True/False: Accounting periods must always follow calendar years.
The process of recording, reporting, and analyzing financial transactions
What is measured at the end of an accounting period?
Income and expenses
Account that is closed out and reduced to a zero balance at the end of each accounting period and begins accumulating a balance in the next accounting period
- Represents the transactions of a defined accounting period for organization
- Accounts on the income statement (revenue and expense accounts)