Have you heard of Mechanics of Accounting? Well, this is the process of recording (a summary of) the details of service consumption that usually follows successful authentication and authorization. Financial statements are key goals of the accounting process. To prepare them at the end of an accounting period, individual financial transactions must be analysed, classified, and recorded throughout the period. This initially takes place in a record book called the journal, where financial events called transactions are recorded as they happen, in chronological order. When a transaction occurs, two or more accounts are affected. There is also a dollar amount associated with each of the accounts. Determining which accounts are impacted, and by how much. The key steps in the eight-step accounting cycle include recording journal entries, posting to the general ledger, calculating trial balances, making adjusting entries, and creating financial statements. Accounting Mechanics shows us how Accountants collect and record accounting data for the preparation of principal financial statements required by GAAP.

Gokul JL

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