Internal audits should be performed by _____.

all sizes and types of businesses

Which type of software might a company similar to Amazon use in their accounting departments?

enterprise resource planning software

What is the last step of the accounting cycle?

Post-closing trial balance

A tornado that destroys several stores is considered what type of event? internal or external

external

Recordable transactions in the accounting cycle are typically

measurable, reliable, and relevant

accounting cycle

a process of recording transactions and preparing financial statements

double-entry accounting

a two-sided form of accounting used to analyze debits and credits

adjustments

transactions not included in the trial balance

trial balance

a worksheet balancing all debits and credits that shows final account balances

assets

cash, accounts receivables, equipment

liabilities

accounts payable, notes payable

equity

common stock, retained earnings

revenues

sales

expenses

telephone, rent, utilities

calendar year

a January-December accounting period

fiscal year

a one-year period outside of a calendar year accountants use for reporting and budgeting

income summary account

a temporary account into which all income statements, revenue, and expense accounts are transferred at the end of the fiscal year

permanent accounts

accounts on the balance sheet with balances carried from one accounting period to the next accounting period

temporary accounts

accounts on the income statement that are closed or transferred at the end of an accounting period

artificial intelligence

human tasks performed by a computer

data hacking

stealing private information digitally

internal audit

a voluntary internal review of financial transactions to ensure accuracy, compliance, and internal controls