Sokha Seng UEI College, Gardena Business office Adm./Task#1 Accounting Mod 110 Frank Ezenekwe,MBA
The Accounting Process Analyzing
Recording
Classifying
Summarizing
Reporting
Interpreting
Analyzing Is looking at events that have taken place and thinking about how they effect the business.
Recording
Recording is entering financial information about events into the accounting system. Althought this can be done with paper and pencil, most businesses use computers to perform routine record-keeping operations.
Classifying Classifying is sorting and grouping similar items together rather than merely keeping a simple, diary-like record of numerous events.
Summarizing
Is the aggregation of many similar events to provide information that I easy to understand. For example, a firm may buy and sell baseballs during the year. Summarizing provides information on the total baseballs bought and sold and the change in the number of baseballs held from the beginning to the end of the period.
Reporting Is telling the results. In accounting, it is common to use tables of numbers to reports results.
Interpreting
Is deciding the meaning and importance of the information in various reports. This may include ratio analysis to help explain how pieces of information relate to one another.
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