ANALYZING BUSINESS TRANSACTIONS OF BUSINESS SERVICES

• types of business transactions

  cash, non-cash, and credit transactions

  internal and external transactions
• cash transactions


  a transaction in which cash is paid or received immediately
• non-cash transactions


  any financial transaction that does not involve the exchange of cash or credit
• credit transactions


  a transaction in which cash is paid or received at a future date.
• internal transaction


  any financial transaction that occurs within an organization rather than with a third party
• external transactions


  a trade of goods and services for money
• business documents (source documents)


  are relevant documents that serve as evidence that a financial transaction occurred
• Most common business documents

  • Checks
  • Invoices
  • Receipts
  • Credit memos
  • Employee time cards
  • Deposit slips
  • Purchase orders
• Checks


  Written, dated and signed request for payment from a specific individual or organization to a bank
• Invoices


  Detailed business document that details the goods provided to the customer
• Receipts


  When a company receives payment for goods, it issues a payment receipt, also known as receipt of payment
• Credit memos


  A commercial document a seller gives to a buyer
• Employee time cards


  Keeps tracks of when a worker begins and ends their shift to show how many hours they worked
• Deposit slips


  Form a bank gives a depositor to fill out
• Purchase orders


  A commercial document and seller's first official offer
• accruals


  are earning or expenses the company has accumulated but not paid back
• general ledger


  is a collection of numbered accounts, also knows as the chart of accounts
• trial balance


  bookeeping worksheet in which equal debit and credit account column totals are calculated from the balances of all ledgers
• double lining


  used to indicate a grand total in accounting