Internal audits should be performed by _____.
all sizes and types of businesses
Which type of software might a company similar to Amazon use in their accounting departments?
enterprise resource planning software
What is the last step of the accounting cycle?
Post-closing trial balance
A tornado that destroys several stores is considered what type of event? internal or external
external
Recordable transactions in the accounting cycle are typically
measurable, reliable, and relevant
accounting cycle
a process of recording transactions and preparing financial statements
double-entry accounting
a two-sided form of accounting used to analyze debits and credits
adjustments
transactions not included in the trial balance
trial balance
a worksheet balancing all debits and credits that shows final account balances
assets
cash, accounts receivables, equipment
liabilities
accounts payable, notes payable
equity
common stock, retained earnings
revenues
sales
expenses
telephone, rent, utilities
calendar year
a January-December accounting period
fiscal year
a one-year period outside of a calendar year accountants use for reporting and budgeting
income summary account
a temporary account into which all income statements, revenue, and expense accounts are transferred at the end of the fiscal year
permanent accounts
accounts on the balance sheet with balances carried from one accounting period to the next accounting period
temporary accounts
accounts on the income statement that are closed or transferred at the end of an accounting period
artificial intelligence
human tasks performed by a computer
data hacking
stealing private information digitally
internal audit
a voluntary internal review of financial transactions to ensure accuracy, compliance, and internal controls