A transaction is an event that has a financial impact on the business.
For an accounting transaction to occur, there must be a change in a company’s resources or claims to those resources.
We record transactions using debits and credits.
A company breaks down the financial statement elements into accounts. The list of accounts are called the chart of accounts.
The general ledger provides a chronological record of all the company’s transactions and the balance for each of a company’s accounts (as listed in the chart of accounts).
The trial balance lists all accounts and their balances at a specific point in time.