In order to understand the “Accounting language” you need to familiarise yourself with a few more terminologies. In this lesson we look at assets, liabilities, income and expenses and profit vs loss.
Up Next in Term 1
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Accounting Cycle Overview
The accounting cycle refers to a series of steps that occur every month. The accounting cycle has the following steps: transactions, source documents, subsidiary journals, general ledger, retail balance, Income statement and the balance sheet.
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Source documents
A source document is completed for every transaction as proof of that transaction. The source documents that you learn about at the grade 8 level include duplicate receipts, cash register rolls, cash invoices, bank deposit slips, cheque counterfoil, and bank statements.
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Introdution to subsidiary journals
Subsidiary journals are a point of first entry meaning that when a transaction is entered in the accounting records it is first entered into a journal and because there are so many types of transactions and source documents there is also a wide range of journals.
