Manual accounting system is a system in which someone performs each of the steps in the accounting cycle by hand.
For example, someone manually enters each accounting transaction in the journal and manually posts each to the ledger. Other manual computations must be made to obtain ledger account balances and to prepare a trial balance and financial statements.
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- Equivalent units of production
Equivalent units of production measure the work done during the period, expressed in fully completed units. This concept is used to determine the cost per unit of completed product.
Charter is a document that creates a corporation. The charter may be an approved copy of the application form, or it may be a separate document containing the same basic data.
- Partners’ capital statement
Partners’ capital statement is the owner’s equity statement for a partnership which shows the changes in each partner’s capital account and in total partnership capital during the year.
- Margin of safety ratio
The margin of safety ratio is the margin of safety in dollars divided by actual (or expected) sales.
- Book value of common stock
Book value of common stock is the amount per share that stockholders would theoretically receive if a company’s assets were sold on the balance sheet date. (Found by dividing stockholders equity by the number of common stock shares outstanding.
- Overhead volume variance
The overhead volume variance refers to the difference between normal capacity hours and standard hours allowed times the fixed overhead rate.
- Contra-revenue account
Contra-revenue account is an account that is offset against a revenue account on the income statement.