University:
McMaster University
Course:
COMMERCE 3FC3 | International Finance
Academic year:

2022
Views:

192

Pages:

4
Author:

Accinkiquicpqw

Books of Prime Entry Learning Outcomes: • Explain the main forms of business transaction and documentation • Understand the need for prime entry books • Identify the types of source documents and prime entry books • Record transactions in prime entry books 2 Business Transactions and Documentation • In every business a number of transactions and events will take place every day. The role of financial reporting is to effectively measure the effect of those transactions and events records the effects on the business and summarize those transactions and their consequences in a format that is useful to the users of the financial statements. • The main transactions that take place include sales, purchases and payroll related transactions. All of these transactions must be adequately captured by the financial reporting system. • With most transactions supporting document will be created to confirm the transaction has taken place, when the transaction took place and the associated value of the transaction. This documentation is vital to the financial accountant, who uses the information on the document as a data source to initiate the measurement and recording of the transactions. 3 Business Transactions and Documentation