Study Set Content:
while information in
the ledger is grouped by
accounts
is called the book of
final entry.
ledger
known as the book of original
entry
Journal
The two records are cross-referenced with
each other by using
folio column or post
reference columns.
The account number found in the edger is
obtained from the
chart of accounts
which will be
used as a post reference in the
general Journal
is a classified list of account
titles prepared for the use of the bookkeeper as
guide.
The chart of account
There are many types of statements that
can be constructed from journal and ledger
entries. However, there are three important
statements necessary for internal and
external purposes which are the:
○ Income statement
○ Balance sheet
○ Cash flow statement
These reports provide the management an
excellent picture of the business activities in
terms of
assets, liabilities, profits, or losses,and how cash may be efficiently
used.
A financial report on business transactions
over a defined period of time.
Income Statement
It provides information on the results of
operations over a given period and is
developed at the end of a business fiscal
year.
Income Statement
an income statement is
recommended to be (blank)so the
owner may know the pharmacy’s profitability
before it’s too late to take any corrective
action.
done monthly
An accounting period usually consists of
12 months
recorded. If the accounting period ends
on December 31, it is called a
calendar period
is an accounting
period that ends in any other month of the
following year.
Fiscal period
Represent the inflow of cash or other assets
from clients and customer services
rendered or for goods sold by the business.
It increases assets and owner’s equity.
Revenues
The account title used to describe revenues
common to all service business is
Service
Income, Professional Income, or Sales.
is often used for
merchandising and manufacturing types of
business.
sales account
In rendering services, a business will incur
expenses that will reduce its earnings. The
consumption of assets or using up of
services is called
Expernses
Presents the income and expenses in a
series of operations of additions or
subtractions before arriving at the final
result of net income or net loss.
Multiple step-form
