The Accounting system - series/collection of tasks and records - by means of which transactions are processed to create financial records - major elements of an accounting system: - people who carry out - procedures (write out invoice, calculate a price, enter invoices etc) - paper (order forms, ledgers, lists etc) Five business cycles of accounting system
Finance and Investment Cycle
Revenue and Receipts cycle
The Accounting System Payroll and Personnel Cycle
Acquisitions and Payments cycle
Inventory and Production cycle Financial Statements - financial records relate to the business cycles - financial records are summarized in financial statements