The document provides an overview of the accounting cycle, which consists of a recording phase and reporting phase. The recording phase involves analyzing transactions, recording them in journals, posting to ledgers, and preparing a trial balance. The reporting phase involves preparing adjusting entries, a post-adjusted trial balance, financial statements, and closing entries. The purpose is to review the basic steps of the accounting process, including journalizing, posting, preparing financial statements, and closing books at the end of each period.
How to completing accounting cycle with worksheet.
This for you that interest to lean how to completing accounting system with manual. You gonna learn about basic off accounting a lot.
How to completing accounting cycle with worksheet.
This for you that interest to lean how to completing accounting system with manual. You gonna learn about basic off accounting a lot.
הוצאות משכורות. כמו עם רוב הוצאות, לכללי חשבונאות מקובלים, נפוץ המכונה עקרונות חשבונאיים מקובלים, לרשום הוצאות שכר מזוהים כפי שהם הנצברות. זה אומר לא משנה כאשר העובד ישולם, אם העובד עבד, החברה להכיר הוצאה.
Definition of accounting, what is accounting cycle? And how to record business transactions, it consist on various series which started from journal entries, ledger, and trial balance. key terms of accounting. The Accounting Rules of debit and credit, Debit money, assets and liabilities, Bad Debits, Balance Sheet, Double-entry, bad debts, inventory, Expenses, depreciation , Accumulated Depreciation , types of ledger account, categories of general ledger account, Assets and Liabilities, Owners’ Equity, Revenue Expansion of the Basic Equation and Expense, and examples.
Principal Consultant - Accounting & Analyticslukecollard
If it’s time to move to a more like-minded recruitment agency, with real clients, and focus on actually being a recruiter without the mindless KPIs and sales activity, I’d love to chat….
הוצאות משכורות. כמו עם רוב הוצאות, לכללי חשבונאות מקובלים, נפוץ המכונה עקרונות חשבונאיים מקובלים, לרשום הוצאות שכר מזוהים כפי שהם הנצברות. זה אומר לא משנה כאשר העובד ישולם, אם העובד עבד, החברה להכיר הוצאה.
Definition of accounting, what is accounting cycle? And how to record business transactions, it consist on various series which started from journal entries, ledger, and trial balance. key terms of accounting. The Accounting Rules of debit and credit, Debit money, assets and liabilities, Bad Debits, Balance Sheet, Double-entry, bad debts, inventory, Expenses, depreciation , Accumulated Depreciation , types of ledger account, categories of general ledger account, Assets and Liabilities, Owners’ Equity, Revenue Expansion of the Basic Equation and Expense, and examples.
Principal Consultant - Accounting & Analyticslukecollard
If it’s time to move to a more like-minded recruitment agency, with real clients, and focus on actually being a recruiter without the mindless KPIs and sales activity, I’d love to chat….
McKonly & Asbury Webinar - LEAN and the Finance and Accounting ProcessMcKonly & Asbury, LLP
We continued our Celebrating 40 Years of Excellence! Webinar Series with a webinar entitled "LEAN and the Finance and Accounting Process" presented by David Blain (Principal) with McKonly & Asbury! Thank you to everyone that attended.
David provided us with a useful understanding of how to use and implement LEAN to enhance the finance and accounting processes within your business. We focused on key concepts of LEAN and tips around how to implement those concepts for improved operational and financial reporting to business leaders, managers, and front line operations personnel.
Check out our Upcoming Events page for news and updates on our future seminars and webinars at www.macpas.com/events.
The Powerpoint from Dan Roam’s captivating talk from MIX '09 about persuading people with pictures. Whether convincing leadership to back a project, getting a VC to fund a business, building consensus on a project team, you’ll see how nothing is more powerful than a simple picture.
Week 3Week 3E3-9 and E3-13Total Points 50E3-9 [20 pts]E3-13 .docxmelbruce90096
Week 3Week 3:E3-9 and E3-13Total Points: 50E3-9: [20 pts]E3-13: [30 pts]General Journal(a)Cash(b)GALAXY INC.DateAccount TitlesDebitCreditAug. 1Aug. 1Trial BalanceMay 4Accounts payable70010August 31, 2012Cash70031DebitCredit7Bal.Cash…………………………….Accounts receivable…….8Accounts ReceivableEquipment…………………..Aug. 25Aug. 31Notes payable……………..9Bal.Common Stock……………Service revenue…………..17EquipmentAug. 1222Bal.29Notes PayableAug. 12Bal.Common StockAug. 1Bal.Service RevenueAug. 1025Bal.
study objectives
After studying this chapter, you should be able to:
1 Analyze the effect of business transactions on the basic
accounting equation.
2 Explain what an account is and how it helps in the recording
process.
3 Define debits and credits and explain how they are used to
record business transactions.
4 Identify the basic steps in the recording process.
5 Explain what a journal is and how it helps in the recording
process.
6 Explain what a ledger is and how it helps in the recording
process.
7 Explain what posting is and how it helps in the recording
process.
8 Explain the purposes of a trial balance.
9 Classify cash activities as operating, investing, or
financing.
chapter
THE ACCOUNTING
INFORMATION SYSTEM
3
100
● Scan Study Objectives
● Read Feature Story
● Scan Preview
● Read Text and Answer
p. 110 p. 116 p. 119 p. 128
● Work Using the Decision Toolkit
● Review Summary of Study Objectives
● Work Comprehensive p. 133
● Answer Self-Test Questions
● Complete Assignments
● Go to WileyPLU S for practice and tutorials
● Read A Look at I FR S p. 159
● the navigator
Do it!
Do it!
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c03TheAccountingInformationSystem.qxd 9/2/10 1:38 PM Page 100
101
How organized are you financially? Take a short quiz.
Answer yes or no to each question:
• Does your wallet contain so many cash machine
receipts that you’ve been declared a walking fire
hazard?
• Is your wallet such a mess that it is often faster to
fish for money in the crack of your car
seat than to dig around in your wallet?
• Was Steve Nash playing high school
basketball the last time you balanced
your bank account?
• Have you ever been tempted to burn down your
house so you don’t have to try to find all of the re-
ceipts and records that you need to fill out your tax
returns?
If you think it is hard to keep track of the many
transactions that make up your life, imagine what it is
like for a major corporation like Fidelity Investments.
Fidelity is one of the largest mutual fund manage-
ment firms in the world. If you had your life savings
invested at Fidelity Investments, you might be just
slightly displeased if, when you called to find out
your balance, the representative said, “You know, I
kind of remember someone with a name like yours
sending us some money—now what did we do with
that?”
To ensure the accuracy of your balance and the
security of your funds, Fidelity Investments, like all
other companies large and small, relies on a sophisti-
cated.
Single entry system is a system of accounting which does
not follow the double entry system. Under this system
only the accounts related to debtors and creditors are
maintained. It is mixed up by both business transactions
and personal transactions. Real accounts and nominal
accounts are ignored. Single entry system is also known
as accounts from incomplete records.
According to Kohler, “ single entry system is a system of
bookkeeping in which As a rule only records of cash and
personal accounts are maintained. It is always
incomplete double entry wearing with circumstances”
Objectives of single entry system
1. To record business transactions
2. To open accounts and to obtain the balances
3. To prepare a trial balance
4. To ascertain the profit or loss of a business
5. To ascertain the financial position of a business.
Features of single entry system
It does not follow strict double entry system.
It is an incomplete, inaccurate,unscientific,
unsatisfactory and unreliable system of bookkeeping.
It is flexible.
It is suitable to small concerns
Fundamentals of Business Mathematics in Canada Canadian 2nd Edition Jerome So...kocajsa
Full download http://alibabadownload.com/product/fundamentals-of-business-mathematics-in-canada-canadian-2nd-edition-jerome-solutions-manual/
Fundamentals of Business Mathematics in Canada Canadian 2nd Edition Jerome Solutions Manual
This document briefly describes each and every stage of accounting cycle with appropriate rules. rules followed are based on type of account.it also includes the proforma of journal,ledger,trail balance, final account statements.
1. 1
A Review of theA Review of the
Accounting CycleAccounting Cycle
An electronic presentationAn electronic presentation
by Douglas Cloudby Douglas Cloud
Pepperdine UniversityPepperdine University
An electronic presentationAn electronic presentation
by Douglas Cloudby Douglas Cloud
Pepperdine UniversityPepperdine University
chapterchapter 22
2. 2
Learning Objectives
1. Identify and explain the basic steps in
the accounting process (accounting
cycle).
2. Analyze transactions and make and post
journal entries.
3. Make adjusting entries, produce
financial statements, and close nominal
accounts.
ContinuedContinued
3. 3
Learning Objectives
4. Distinguish between accrual and cash-
basis accounting.
5. Discuss the importance and expanding
role of computers to the accounting
process.
4. 4
The purpose of this
chapter is to review the
basic steps of the
accounting process.
The purpose of this
chapter is to review the
basic steps of the
accounting process.
5. 5
Step 1Step 1
BusinessBusiness
documentsdocuments
analyzedanalyzed
Step 2Step 2
TransactionsTransactions
recorded inrecorded in
journalsjournals
Step 3Step 3
TransactionsTransactions
posted toposted to
ledgersledgers
ContinuedContinuedContinuedContinued
Recording Process
Overview of the
Accounting Process
6. 6Overview of the
Accounting Process
Step 5Step 5
AdjustmentsAdjustments
Work sheetWork sheet
(optional)(optional)
ContinuedContinuedContinuedContinued
Step 4Step 4
Trial balanceTrial balanceSteps in the
Reporting
Phase
Continued from
previous slide
7. 7
Step 7Step 7
AdjustmentsAdjustments
Step 6Step 6
Financial statementsFinancial statements
Steps in the
Reporting
Phase
Step 8Step 8
Post-closing trialPost-closing trial
balance (optional)balance (optional)
Overview of the
Accounting Process
8. 8
Recording Phase
A system of recording transactions in a way that
maintains the equality of the accounting
equation.
Assets = Liabilities + Owners’ Equity
or
A = L + OE
9. 9
1. Analyzing Business Documents
Transactions are the
exchange of goods or
services between entities,
as well as other events
that have an economic
impact on a business.
Business documents are
records that are evidence
of transactions.
10. 10
General Journal Entry Format
Date Debit Entry.................................. xx
Credit Entry............................. xx
Explanation.
A journal is an accounting record in which
business transactions are entered in
chronological order.
Journal entries record transaction
information; debits equal credits.
2. Journalizing Transactions
11. 11
Every journal entry involves a three-step
process:
1. Identify the accounts involved with an
event or transaction.
2. Determine whether each account
increased or decreased.
3. Determine the amount by which each
account was affected.
2. Journalizing Transactions
12. 12
Assets = Liabilities + Owners’ Equity
DR CR DR CR DR CR
(+) (–) (–) (+) (–) (+)
Capital Stock
DR CR
(–) (+)
Retained Earnings
DR CR
(–) (+)
ContinuedContinuedContinuedContinued
Debits and Credits
13. 13
Debits and Credits
Retained Earnings
DR CR
(–) (+)
Expenses
DR CR
(+) (–)
Revenues
DR CR
(–) (+)
Dividends
DR CR
(+) (–)
14. 14
Date Description
Post
Ref. Debits Credits
General Journal Page 24
2005
July 1 Dividends 330 25,000
Dividends Payable 260 25,000
Declared semiannual
cash dividend on
common stock.
10 Equipment 180 7,500
Notes Payable 220 7,500
Issued note for new
equipment .
15. 15
Example: Journal Entry
On January 2, sold merchandise costing
$60 to a customer on account for $75.
Make the journal entry.
16. 16
Example: Journal Entry
Jan. 2 Accounts Receivable..................... 75
Sales Revenue.......................... 75
Sold merchandise on
account.
2 Cost of Goods Sold...................... 60
Inventory................................. 60
To record cost and
reduce inventory.
On January 2, sold merchandise costing
$60 to a customer on account for $75.
Make the journal entry.
This entry assumes that theThis entry assumes that the
perpetual system is used.perpetual system is used.
This entry assumes that theThis entry assumes that the
perpetual system is used.perpetual system is used.
17. 17
3. Posting to the Ledger Accounts
Posting is the process of transferring
amounts from the journal to the general
ledger.
A ledger is a collection of accounts in
which data from transactions recorded in the
journals are posted, classified, and
summarized.
A chart of accounts lists all accounts used
by the company.
18. 18
3. Posting to the Ledger Accounts
The Equipment account in the general ledger
after the purchase of July 10 (Slide 14) has
been posted would appear as follows:
Account EQUIPMENT Account No: 180
Date Item PR Debit Credit Balance
2005
July 1 Balance 10,550
10 Purchase Equipment J24 7,500 18,050
To examine the journal entry, click this button to
go to Slide 14. To return, click on the word
“July” in the entry on Slide 14.
19. 19
Typical Chart of Accounts
ASSETS (100-199)
Current Assets (100-150)
101 Cash
105 Accounts Receivable
107 Inventory
Long-Term Assets (151-199)
151 Land
152 Building
LIABILITIES (200-299)
Current Liabilities (200-219)
201 Notes Payable
202 Accounts Payable
Long-Term Liabilities (220-239)
222 Mortgage Payable
OWNERS’ EQUITY (300-399)
301 Capital Stock
330 Retained Earnings
SALES (400-499)
400 Sales Revenue
EXPENSES (500-599)
500 Cost of Goods Sold
523 Rent Expense
528 Advertising Expense
573 Utility Expense
20. 20
Reporting Phase
4. A trial balance is prepared.
5. Adjusting entries are recorded.
6. Financial statements are prepared.
7. Closing entries are made.
8. A post-closing trial balance is
prepared (optional).
21. 21
4. Preparing a Trial Balance
Determine the account balance for each
T-Account.
A trial balance is a list of all accounts
and their balances. It provides a means
to assure that debits equal credits.
22. 22XYZ Company
Trial Balance
December 31, 2005
Debits Credits
Cash $ 21
Accounts Receivable 15
Inventory 12
Land 200
Accounts Payable $ 30
Capital Stock 150
Retained Earnings 24
Sales Revenue 919
Cost of Goods Sold 850
Advertising Expense 10
Misc. Expenses 15 ______
Total $ 1,123 $ 1,123
23. 23
5. Preparing Adjusting Entries
Adjusting entries are required at the end of
each accounting period for accrual- basis
accounting, prior to preparing the financial
statements. The purpose for adjusting
entries are to:
• bring balance sheet accounts current.
• reflect proper amounts of revenues, costs,
and expenses on the income statement.
24. 24
Tips Regarding Adjusting EntriesTips Regarding Adjusting EntriesTips Regarding Adjusting EntriesTips Regarding Adjusting Entries
Analytical Process. You must determine
what original entry was made (if any) and
what the ending balances should be before
you know what adjusting entry to make.
You cannot memorize adjusting entries.
Adjusting entries always incorporate a
balance sheet account and an income
statement account.
Adjusting entries never involve a cash
account.
25. 25
• Unrecorded Revenues—Revenues that
have been earned but not yet recorded.
• Unearned Revenues—Revenues that have
been recorded but not yet earned.
• Unrecorded Expenses—Expenses that
have been incurred but not yet recorded.
• Prepaid Expenses—Expenses that have
been recorded but not yet incurred.
Most Common Adjusting EntriesMost Common Adjusting EntriesMost Common Adjusting EntriesMost Common Adjusting Entries
26. 26
1. Identify the original entries that were
made, if any. Original entries are only
made for unearned revenues and
prepaid expenses.
2. Determine what the correct balances
should be at this point in time.
3. Make the adjustments needed to bring
the balances to the desired amounts.
Three-Step Process forThree-Step Process for
Adjusting EntriesAdjusting Entries
Three-Step Process forThree-Step Process for
Adjusting EntriesAdjusting Entries
27. 27
Rosi, Inc. purchased buildings in 2000 at a
cost of $156,000, an expected life of 20 years,
and no anticipated residual value. Each year,
5% of the cost is depreciated. At the end of
2005, the following adjusting entry is made:
Adjusting Entry
12/31 Depreciation Expense—Buildings 7,800
Accumulated Depr.—Buildings 7,800
To record depreciation
on building at 5% per year.
Asset DepreciationAsset DepreciationAsset DepreciationAsset Depreciation
28. 28
An estimation of bad debts based on the
ending receivables balance reveals that the
allowance account needs to be increased by
$1,100.
Adjusting Entry
12/31 Bad Debts Expense 1,100
Allowance for Bad Debts 1,100
To adjust for estimated bad
debts expense.
Bad DebtsBad DebtsBad DebtsBad Debts
29. 29
Later, on March 19 that a $150 receivable is
deemed to be uncollectible. Using the
allowance account, the uncollectible account
is written off the books.
3/19 Allowance for Bad Debts 150
Accounts Receivable 150
To write off an uncollectible
account.
Bad DebtsBad DebtsBad DebtsBad Debts
Note that this entry is not an adjusting
entry. It is made when the account is
determined to be uncollectible.
Note that this entry is not an adjusting
entry. It is made when the account is
determined to be uncollectible.
30. 30
At the end of the fiscal period, Rosi, Inc.
had accrued salaries and wages totaling
$2,150.
Adjusting Entry
12/31 Salaries and Wages Expense 2,150
Salaries and Wages Payable 2,150
To record accrued salaries and
wages.
Accrued ExpensesAccrued ExpensesAccrued ExpensesAccrued Expenses
31. 31
Rosi, Inc. holds a note receivable from a
customer on which interest total $250 has
accrued.
Adjusting Entry
12/31 Interest Receivable 250
Interest Revenue 250
To record accrued interest on a
note receivable.
Accrued RevenuesAccrued RevenuesAccrued RevenuesAccrued Revenues
32. 32
Rosi, Inc.’s trial balance shows that the asset
account Prepaid Insurance has a balance of
$8,000. By December 31, only $3,800
applies to future periods.
Adjusting Entry
12/31 Insurance Expense 4,200
Prepaid Insurance 4,200
To record expired insurance.
$8,000$8,000 –– $3,800$3,800$8,000$8,000 –– $3,800$3,800
Prepaid ExpensesPrepaid ExpensesPrepaid ExpensesPrepaid Expenses
Original debit to an asset accountOriginal debit to an asset account
33. 33
Rosi, Inc.’s trial balance shows that the asset
account Insurance Expense has a balance of
$8,000. By December 31, $3,800 applies to
future periods.
Adjusting Entry
12/31 Prepaid Insurance 3,800
Insurance Expense 3,800
To record expired insurance.
$8,000$8,000 –– $4,200$4,200$8,000$8,000 –– $4,200$4,200
Prepaid ExpensesPrepaid ExpensesPrepaid ExpensesPrepaid Expenses
Original debit to an expense accountOriginal debit to an expense account
34. 34
Rosi, Inc. receives a payment of $2,550 from
a customer prior to the services being
rendered. By December 31, $2,075 in
services have been provided.
Adjusting Entry
12/31 Rent Revenue 475
Unearned Rent Revenue 475
To record unearned rent revenue.
Original credit to a revenue accountOriginal credit to a revenue account
$2,550$2,550 –– $2,075$2,075$2,550$2,550 –– $2,075$2,075
Deferred RevenuesDeferred RevenuesDeferred RevenuesDeferred Revenues
35. 35
Adjusting Entry
12/31 Unearned Rent Revenue 2,075
Rent Revenue 2,075
To record rent revenue.
Rosi, Inc. receives a payment of $2,550 from
a customer prior to the services being
rendered. By December 31, $2,075 in
services have been provided. $2,550$2,550 –– $475$475$2,550$2,550 –– $475$475
Original credit to a liability accountOriginal credit to a liability account
Deferred RevenuesDeferred RevenuesDeferred RevenuesDeferred Revenues
36. 36
The partial trial balance in the
next slide is from page 60 of
your textbook. Note that the
firm has $45,000 in inventory.
The partial trial balance in the
next slide is from page 60 of
your textbook. Note that the
firm has $45,000 in inventory.
InventoryInventoryInventoryInventory
38. 38
InventoryInventoryInventoryInventory
Purchases has a debit
balance of $162,600 and
Purchase Discounts has a
credit balance of $3,290.
Purchases has a debit
balance of $162,600 and
Purchase Discounts has a
credit balance of $3,290.
39. 39
InventoryInventoryInventoryInventory
Rosi, Inc.
Trial Balance
December 31, 2005
Cash $ 83,110
Accounts Receivable 106,500
Allowance for Doubtful Accounts $ 1,610
Dividends 13,600
Sales 479,500
Purchases 162,600
Purchases Discounts 3,290
Cost of Goods Sold 0
Salaries and Wages Expense 172,450
Heat, Light, and Power 32,480
Debit Credit
40. 40
Adjusting Entry
12/31 Inventory 6,000
Purchases Discounts 3,290
Cost of Goods Sold 153,310
Purchases 162,500
To adjust inventory, cost of
goods sold, and related
accounts.
$51,000$51,000 –– $45,000$45,000$51,000$51,000 –– $45,000$45,000
To closeTo closeTo closeTo close
To closeTo closeTo closeTo close
InventoryInventoryInventoryInventory
Purchases, Purchases Discounts, and Cost of
Goods Sold are affected by the adjusting
entry to update the inventory account.
41. 41
Perpetual Inventory SystemPerpetual Inventory SystemPerpetual Inventory SystemPerpetual Inventory System
When a perpetual
inventory system is
maintained, a separate
Purchases account is
not used.
When a perpetual
inventory system is
maintained, a separate
Purchases account is
not used.
When a sale takes
place, the sale is
recorded similar to
the periodic
inventory system.
When a sale takes
place, the sale is
recorded similar to
the periodic
inventory system.
The cost of the
merchandise is
recorded by a debit
to Cost of Goods
Sold and a credit to
Inventory.
The cost of the
merchandise is
recorded by a debit
to Cost of Goods
Sold and a credit to
Inventory.
43. 43
7. The Closing Process
Real accounts are permanent accounts not
closed to a zero balance at the end of the
accounting period. These accounts are
carried forward to the next period.
Nominal accounts are temporary accounts
that are closed to a zero balance at the end of
each accounting period.
Closing entries reduce all nominal accounts
to a zero balance.
44. 44
Revenues
Bal. xxx
Retained Earnings
Beg. Bal. xxx
xxx
Since the revenue account is aSince the revenue account is a
nominal account, it is closed atnominal account, it is closed at
the end of the period tothe end of the period to
Retained Earnings.Retained Earnings.
Since the revenue account is aSince the revenue account is a
nominal account, it is closed atnominal account, it is closed at
the end of the period tothe end of the period to
Retained Earnings.Retained Earnings.
7. The Closing Process
Revenues
45. 45
Expenses
Bal. xxx xxx
The expense account isThe expense account is
credited in order tocredited in order to
close the account at theclose the account at the
end of the period.end of the period.
The expense account isThe expense account is
credited in order tocredited in order to
close the account at theclose the account at the
end of the period.end of the period.
7. The Closing Process
Retained Earnings
Beg. Bal. xxx
Revenues
Expenses
46. 46
Dividends
Bal. xxx xxx
The dividendsThe dividends
account, which is alsoaccount, which is also
nominal, is creditednominal, is credited
to close out theto close out the
balance.balance.
The dividendsThe dividends
account, which is alsoaccount, which is also
nominal, is creditednominal, is credited
to close out theto close out the
balance.balance.
7. The Closing Process
Retained Earnings
Beg. Bal. xxx
Revenues
Expenses
Dividends
47. 47
Retained Earnings
Retained EarningsRetained Earnings isis
a real account anda real account and
always carries aalways carries a
balance.balance.
Retained EarningsRetained Earnings isis
a real account anda real account and
always carries aalways carries a
balance.balance.
Net Income for theNet Income for the
period is determined byperiod is determined by
these two items.these two items.
Net Income for theNet Income for the
period is determined byperiod is determined by
these two items.these two items.
Beg. Bal. xxx
Revenues
Expenses
Dividends
End. Bal. xxx
7. The Closing Process
Dividends reduceDividends reduce
Retained EarningsRetained Earnings
Dividends reduceDividends reduce
Retained EarningsRetained Earnings
48. 48
8. Post-Closing Trial Balance
• Provides a listing of all real account
balances at the end of the closing
balance.
• The trial balance assures that total
debits equal total credits prior to the
beginning of the new accounting
period.
• Only real accounts will have a balance
at this time.
49. 49
Example: Post-Closing Trial Balance
Jim Brewster, Inc.
Post-Closing Trial Balance
as of December 31, 2004
Debits Credits
Cash $ 8,200
Accounts Receivable 4,000
Inventory 3,000
Supplies 1,000
Accounts Payable $ 5,000
Capital Stock 10,000
Retained Earnings 1,200
Totals $16,200 $16,200
50. 50
Summary of the Accounting Cycle
1. Analyze transactions and business
documents.
2. Journalize transactions.
3. Post journal entries to accounts.
4. Determine account balances and prepare a
trial balance.
5. Journalize and post adjusting entries.
6. Prepare financial statements.
7. Journalize and post closing entries.
8. Prepare a post-closing trial balance.
51. 51
Summary of the Accounting Cycle
An accountant must
thoroughly understand the
intricacies of the accounting
cycle. That means you!
An accountant must
thoroughly understand the
intricacies of the accounting
cycle. That means you!
52. 52
Accrual Accounting
Accrual accounting
recognizes revenues as they
are earned, not necessarily
when cash is received.
Accrual accounting
recognizes revenues as they
are earned, not necessarily
when cash is received.
53. 53
That’s true. And, accrual
accounting recognizes expenses
as they are incurred, not
necessarily when cash is paid.
That’s true. And, accrual
accounting recognizes expenses
as they are incurred, not
necessarily when cash is paid.
Accrual Accounting
55. 55Computers and the
Accounting Process
There has been a
rapid increase in the
use of computers to
assist in performing
many of the tasks
found in the
accounting cycle.
56. 56Computers and the
Accounting Process
Computers are well
suited to perform
many accounting
cycle tasks.
RecordingRecordingRecordingRecordingStorageStorageStorageStorageMathematicalMathematical
ComputationsComputations
MathematicalMathematical
ComputationsComputations
RecallRecallRecallRecallReport GenerationReport GenerationReport GenerationReport Generation
57. 57Computers and the
Accounting Process
Computers will never
replace the
accountant.
Computers will never
replace the
accountant.