Accounting system is a key part of the Free Bookkeeping Course 1 and Accounting Trainees and bookkeepers need to thoroughly understand it and define it.
You are part way through the FREE BOOKKEEPING COURSE 1 and you should have read the pages listed below before reading this page:
What is an accounting system?
Good question – what do we mean by an accounting system? Well, essentially most businesses buy and sell goods and/or services. Money comes in and money goes out. All the accounting system does is record this movement of money. A large building contractor may only issue one invoice a month for a substantial amount of money, whereas Amazon the online shopping company makes 12 sales a second and every sale needs an invoice!
So the accounting system used depends upon the nature of the business.
Remember this is only an introduction to the Accounting System.
You will learn a lot more about the accounting system as the course develops. But you should be aware that an accounting system is about recording data and producing information.
The textbook lists five stages to the accounting system. You will need to learn them:
Books of prime entry
Don’t worry if you find these terms confusing, it is very early in the course and we will go into much more detail as the course progresses. By the time you get to the end of the course you will be using these terms like an old hand.
Accounting is full of fancy terminology such as double-entry, assets and profits etc. Accounting is said to be the language of business, so I’m afraid you will have to learn these terms eventually – but we will do it gradually over the duration of the course so don’t panic and enjoy the quiz below on the introduction to the accounting system.
If you haven’t already purchased the books here is the link to Amazon:
QUIZ: ACCOUNTING SYSTEM
Leaderboard for Introduction to the accounting system1. Sana-36 Points
2. -36 Points
3. -36 Points
4. Susan-36 Points
5. Kim F Davies-36 Points