WGUD217 - Test prep 3 | Questions and Answers |
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Terms in this set (45)
GENERAL LEDGER SYSTEM: Transaction cycles process individual events that
are recorded in special journals and subsidiary
accounts. Summaries of these transactions flow
into the GLS and become sources of input for the
MRS and FRS. The bulk of the flows into the GLS
comes from the transaction processing subsystems.
Note, however, that information also flows from the
FRS as feedback into the GLS
Journal Voucher: can be used to represent summaries of similar
transactions or a single unique transaction,
identifies the financial amounts and affected
general ledger (GL) accounts. Routine transactions,
adjusting entries, and closing entries are all
entered into the GL via journal vouchers. Because a
responsible manager must approve journal
vouchers, the manager offers a degree of control
against unauthorized GL entries.
,GLS DATABASE: principal file in GLS Database & based on
· GL Master File: organizations Chart of Accounts
o Each record in GL Master is either a separate GL
account (ie. Sales) or Control Account (ie. AR –
Control) for a corresponding subsidiary ledger in
TPS
o FRS draws upon GL master to produce financial
statements
o MRS uses this file to support internal information
reporting
GLS DATABASE · GL ledger history same format as GL master. Provides historical
file: financial date for comparative financial reports
GLS DATABASE ·· Journal voucher collection of journal vouchers processed in current
file: period. It provides a record of all GL transactions &
replaces traditional general journal
GLS DATABASE Journal voucher contains journal vouchers for past periods. Current
history file: & historical journal voucher files are important links
in firm's audit trail.
GLS DATABASE Responsibility contains revenues, expenditures, and other
Center file: resource utilization data for each responsibility
center in organization. MRS draws upon this data.
GLS DATABASE Budget master file: contains budgeted amounts for revenues,
expenditures, and other resources for responsibility
centers.
, Financial Reporting system: Capture the transaction. Within each transaction
· Financial reporting is final step in cycle, transactions are recorded in the appropriate
overall accounting process that transaction file.
begins in Transaction Cycles. Record in special journal. Each transaction is
entered into the journal. Recall that frequently
The process begins with a clean slate occurring classes of transactions, such as sales, are
at the start of a new fiscal year. Only captured in special journals. Those that occur
the balance sheet (permanent) infrequently are recorded in the general journal or
accounts are carried forward from directly on a journal voucher.
the previous year. From this point, Post to subsidiary ledger. The details of each
the following steps occur: transaction are posted to the affected subsidiary
accounts.
Post to general ledger. Periodically, journal
vouchers, summarizing the entries made to the
special journals and subsidiary ledgers, are
prepared and posted to the GL accounts. The
frequency of updates to the GL will be determined
by the degree of system integration.
Prepare the unadjusted trial balance. At the end of
the accounting period, the ending balance of each
account in the GL is placed in a worksheet and
evaluated in total for debit-credit equality.
Make adjusting entries. Adjusting entries are made
to the worksheet to correct errors and to reflect
unrecorded transactions during the period, such as
depreciation.
Journalize and post adjusting entries. Journal
vouchers for the adjusting entries are prepared and
posted to the appropriate accounts in the GL.
Prepare the adjusted trial balance. From the
adjusted balances, a trial balance is prepared that
contains all the entries that should be reflected in
the financial statements.
Prepare the financial statements. The balance
sheet, income statement, and statement of cash
flows are prepared using the adjusted trial balance.
Journalize and post the closing entries. Journal
Verified Solutions | 2026 Edition | Pass
Guaranteed
Save
Terms in this set (45)
GENERAL LEDGER SYSTEM: Transaction cycles process individual events that
are recorded in special journals and subsidiary
accounts. Summaries of these transactions flow
into the GLS and become sources of input for the
MRS and FRS. The bulk of the flows into the GLS
comes from the transaction processing subsystems.
Note, however, that information also flows from the
FRS as feedback into the GLS
Journal Voucher: can be used to represent summaries of similar
transactions or a single unique transaction,
identifies the financial amounts and affected
general ledger (GL) accounts. Routine transactions,
adjusting entries, and closing entries are all
entered into the GL via journal vouchers. Because a
responsible manager must approve journal
vouchers, the manager offers a degree of control
against unauthorized GL entries.
,GLS DATABASE: principal file in GLS Database & based on
· GL Master File: organizations Chart of Accounts
o Each record in GL Master is either a separate GL
account (ie. Sales) or Control Account (ie. AR –
Control) for a corresponding subsidiary ledger in
TPS
o FRS draws upon GL master to produce financial
statements
o MRS uses this file to support internal information
reporting
GLS DATABASE · GL ledger history same format as GL master. Provides historical
file: financial date for comparative financial reports
GLS DATABASE ·· Journal voucher collection of journal vouchers processed in current
file: period. It provides a record of all GL transactions &
replaces traditional general journal
GLS DATABASE Journal voucher contains journal vouchers for past periods. Current
history file: & historical journal voucher files are important links
in firm's audit trail.
GLS DATABASE Responsibility contains revenues, expenditures, and other
Center file: resource utilization data for each responsibility
center in organization. MRS draws upon this data.
GLS DATABASE Budget master file: contains budgeted amounts for revenues,
expenditures, and other resources for responsibility
centers.
, Financial Reporting system: Capture the transaction. Within each transaction
· Financial reporting is final step in cycle, transactions are recorded in the appropriate
overall accounting process that transaction file.
begins in Transaction Cycles. Record in special journal. Each transaction is
entered into the journal. Recall that frequently
The process begins with a clean slate occurring classes of transactions, such as sales, are
at the start of a new fiscal year. Only captured in special journals. Those that occur
the balance sheet (permanent) infrequently are recorded in the general journal or
accounts are carried forward from directly on a journal voucher.
the previous year. From this point, Post to subsidiary ledger. The details of each
the following steps occur: transaction are posted to the affected subsidiary
accounts.
Post to general ledger. Periodically, journal
vouchers, summarizing the entries made to the
special journals and subsidiary ledgers, are
prepared and posted to the GL accounts. The
frequency of updates to the GL will be determined
by the degree of system integration.
Prepare the unadjusted trial balance. At the end of
the accounting period, the ending balance of each
account in the GL is placed in a worksheet and
evaluated in total for debit-credit equality.
Make adjusting entries. Adjusting entries are made
to the worksheet to correct errors and to reflect
unrecorded transactions during the period, such as
depreciation.
Journalize and post adjusting entries. Journal
vouchers for the adjusting entries are prepared and
posted to the appropriate accounts in the GL.
Prepare the adjusted trial balance. From the
adjusted balances, a trial balance is prepared that
contains all the entries that should be reflected in
the financial statements.
Prepare the financial statements. The balance
sheet, income statement, and statement of cash
flows are prepared using the adjusted trial balance.
Journalize and post the closing entries. Journal
