W7.1 Flashcards
(21 cards)
Consists of series of steps that systematically record, process, and report financial transactions
Accounting cycle
Financial activities that involves the exchange of goods, services, or money between businesses or between a business and its customers
Business transactions
Transaction can be quantified in monetary terms
Monetary measurements
Occurs between the business and a third party
Parties involved
Recorded with legitimate documents like invoice or receipts
Documentation
Does not involve commercial exchanges and typical relate to social responsibilities, or personal activities this transactions are not aim to generating profit for business
Non-business transactions
They do not involve a sale or purchase
No monetary exchange
Often link to a charitable action or community service
Social responsibility
Defines the rides and contribution of business partners
Partnership agreements
Protected confidential information shared between parties
Non-disclosure agreements
Outline terms between property owners and tenants
Lease agreement
Established rules for the governance of a corporation including organization structure and shareholder rights
Corporate bylaws
Comprehensive documents detailing a company’s objective, strategies, market analysis, and financial projections
Business plans
Income statement summarize revenues, cost, and profit over a specific period
Financial documents
Provides a snapshot of assets, liabilities, equity at a given time
Balance sheets
Includes various types such as analytical reports, progress report, and informational reports that provides insight into business operation
Business reports
Captures individual financial transaction including invoices and receipts
Transactional documents
Includes employment agreement, policy manuals, and procedure manuals that outline employee rights and responsibilities
Human resources documentation
Formal records detailing discussions, decisions made, and actions agreed upon during meetings
Minutes of meetings
Includes letters and memos used for internal and external communication within the organization
Correspondence
Standard operating procedures, training manuals, and process maps that guides operational workflows
Process documentation
