What is the flow of information in accounting records?
Information is entered into the general ledger to accounts (from the chart of accounts). The bookkeeping system then aggregates the activity for a specific period of time for each account and prepares a trial balance. The trial balance can then be used to prepare financial statements. The accountant at a company will need to map each trial balance account to the financial statement line item (i.e. revenue, cost of goods sold, selling expenses, general & administrative).
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