Author: Ramon B. Nosce
The general accounting system tells about the whole process of accounting. From the books of original entry otherwise known as journal 'till the end result of the accounting procedure called the financial statement. The financial statement should be made in accordance with the generally accepted accounting procedures and principles. It's a way of providing financial information use to communicate to decision makers. Accounting aims to provide an honest financial information or a fairly presented financial statement. To attain an honest or fairly presented financial statement, it has to adhere with the general accepted doctrine of accounting and made in accordance with the generally accepted accounting procedure.
The accounting procedures tells about the process for which the financial statement was made. The accounting procedures is all about the bookkeeping cycle where the generally accepted accounting principles is applied. It is where all the transactions for the current year are recorded. Transaction is an exchange of goods or services for a certain monetary amount. Either Cash or On Account.
The American Institute Of Certified Public Accountant ( AICPA ) defined accounting as an art of recording, classifying summarizing in a significant manner in terms of money, transactions or events which are in part at least of a financial character and interpreting the results thereof. For every transaction, there are alway two values involve. The value received and the value parted with. To increase the assets of the business we debit and to decrease the assets of the business we credit.
The Bookkeeping Cycle:
- Journalizing
- Posting
-Trial Balance
- Work Sheet ( Either Presented In Account Or Report Form )
-Financial Statement
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