Accounting only records financial impact on businesses and not _____
every single transaction
A transaction must affect how many accounts at a minimum?
2 accounts, called double entry accounting
The step to select two accounts to record a business transaction is called
transaction analysis or analyzing business transactions (first step in accounting)
Transaction analysis only applies when...
a business transaction leaves a financial impact on a company
If a transaction impacts a company financially they are recored into the accounting information system called
journal entry
The process of jorunal entry is called
recording journal entries (second step in accounting)
A complete journal should have ...
date of transaction, debit and credit account, and description of transaction
All journal entries are journalized in a companys jopurnal to the company accounts called
General Ledger
General Ledger is an
arrangement of all company accounts in order of assets, liabilities, equities, revenues, and expenses
Trial balance
is a listing of all of a company's accounts with their respective balances
Liquidity
refers to the speed and ease with which something converts to cash.
For liabilities, liquidity refers to
how quickly cash will be needed to settle the liabilities.