Acaydia School of Aesthetics Transaction Recording Methods Discussion – Assignment Help

I’m studying for my Social Science class and need an explanation.

Please respond to monica with 150 words

What determines when a transaction is recorded?

A transaction is when an exchange is made between a buyer and seller for goods or services. There are many different steps to the recording process most businesses use. Although some businesses just enter transaction information directly into the accounts without using a journal, it’s not common to do so. The first step involves analyzing a transaction to see how it effects an account, you then enter the transaction information into a journal, then transfer the journal information to account in the ledger. To begin the recording process you need to have a transaction, which will have business documents to provide evidence of it such as sales slip, check or a bill. A journal shows the debit and credit effects of a transaction on accounts. A ledger is the entire group of accounts maintained by a company, it shows the balance in each account and it makes it easy to keep track of all of these balances. To me, all of this sounds very time consuming and tedious work, however it makes sure all the information is kept organized and on track for a companies operations.

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