TAILIEUCHUNG - Lecture Fundamental accounting principles (21e) - Chapter 4: Completing the accounting cycle

After completing this chapter you should be able to: Describe merchandising activities and identify income components for a merchandising company, identify and explain the inventory asset and cost flows of a merchandising company, compute the acid-test ratio and explain its use to assess liquidity,. | Completing the Accounting Cycle Chapter 4 Chapter 4: Completing the Accounting Cycle Benefits of a Work Sheet Aids the preparation of financial statements. Reduces possibility of errors. Links accounts and their adjustments. Assists in planning and organizing an audit. Helps in preparing interim financial statements. Shows the effects of proposed transactions. Not a required report. P 1 A work sheet is not a required report, yet using a manual or electronic work sheet has several potential benefits. Specifically, a work sheet: 1. Aids the preparation of financial statements. 2. Reduces the possibility of errors. 3. Links accounts and adjustments to their impacts in financial statements. 4. Assists in planning and organizing an audit of financial statements. 5. Helps in preparing interim financial statements. 6 Shows the effects of proposed transactions. FastForward Worksheet For the Month Ended December 31, 2013 P 1 The adjusted trial balance is prepared by combining the adjustments with the unadjusted balances for each account. As an example, the Prepaid Insurance account has a $2,400 debit balance in the Unadjusted Trial Balance columns. This $2,400 debit is combined with the $100 credit in the Adjustments columns to give Prepaid Insurance a $2,300 debit in the Adjusted Trial Balance columns. The totals of the Adjusted Trial Balance columns confirm the equality of debits and credits. Recording Closing Entries Resets revenue, expense, and withdrawal account balances to zero at the end of the period. Helps summarize a period’s revenues and expenses in the Income Summary account. Identify accounts for closing. Record and post closing entries. Prepare post-closing trial balance. C 1 The closing process is an important step at the end of an accounting period after financial statements have been completed. After the formal financial statements have been prepared, we may begin the process of closing the books and getting ready for the next accounting period. Income is .

• Kế toán - Kiểm toán
• Accounting cycle
• Completing the accounting cycle
• Classified balance sheet
• Accounting principles
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Financial accounting
• Lecture Financial accounting
• Accounting worksheet
• The accounting cycle
• Financial information
• Post closing trial balance
• Correcting entries
• Lecture Accounting principles
• Survey of accounting
• Lecture Survey of accounting
• Accounting for cash
• Financial resources
• Accounting provides information
• Time period principle
• Accounting periods
• Retained earnings
• Principles of financial accounting
• Accounting information
• Recording closing entries
• Close debit balances
• Accounting for receivables
• Accounting information system
• The recording process
• Adjusting entries
• Converting assets
• Adjusted trial balance
• Reporting financial results
• Financial statements
• Evaluating liquidity
• Lecture International accounting
• International accounting
• The worksheet
• Closing the accounts
• Classifying assets
• Fundamental accounting
• Business transactions
• Adjusting accounts
• Completing the accounting cycle operations
• Financial statement
• External transactions
• Financial reporting
• Balance sheet
• Accounting information systems
• Lecture Accounting information systems
• Hệ thống thông tin kế toán
• Revenue cycle
• Revenue cycle activities
• Sales order entry processing