The document discusses the accounting cycle and financial reporting process. It covers the key steps:
1. Preparing the basic financial statements - the balance sheet, income statement, and statement of retained earnings.
2. Making closing entries to reset temporary accounts to zero at the end of the period. This involves transferring account balances to income summary and then to retained earnings.
3. Evaluating the business performance using liquidity and profitability ratios calculated from the financial statements.
What is the accounting cycle?
The accounting cycle is often described as a process that includes the following steps: identifying, collecting and analyzing documents and transactions, recording the transactions in journals, posting the journalized amounts to accounts in the general and subsidiary ledgers, preparing an unadjusted trial balance, perhaps preparing a worksheet, determining and recording adjusting entries, preparing an adjusted trial balance, preparing the financial statements, recording and posting closing entries, preparing a post-closing trial balance, and perhaps recording reversing entries.
Cycle and steps seem to be a carryover from the days of manual bookkeeping and accounting when transactions were first written into journals. In a separate step the amounts in the journal were posted to accounts. At the end of each month, the remaining steps had to take place in order to get the monthly, manually-prepared financial statements.
Today, most companies use accounting software that processes many of these steps simultaneously. The speed and accuracy of the software reduces the accountant's need for a worksheet containing the unadjusted trial balance, adjusting entries, and the adjusted trial balance. The accountant can enter the adjusting entries into the software and can obtain the complete financial statements by simply selecting the reports from a menu. After reviewing the financial statements, the accountant can make additional adjustments and almost immediately obtain the revised reports. The software will also prepare, record, and post the closing entries.
What is the accounting cycle?
The accounting cycle is often described as a process that includes the following steps: identifying, collecting and analyzing documents and transactions, recording the transactions in journals, posting the journalized amounts to accounts in the general and subsidiary ledgers, preparing an unadjusted trial balance, perhaps preparing a worksheet, determining and recording adjusting entries, preparing an adjusted trial balance, preparing the financial statements, recording and posting closing entries, preparing a post-closing trial balance, and perhaps recording reversing entries.
Cycle and steps seem to be a carryover from the days of manual bookkeeping and accounting when transactions were first written into journals. In a separate step the amounts in the journal were posted to accounts. At the end of each month, the remaining steps had to take place in order to get the monthly, manually-prepared financial statements.
Today, most companies use accounting software that processes many of these steps simultaneously. The speed and accuracy of the software reduces the accountant's need for a worksheet containing the unadjusted trial balance, adjusting entries, and the adjusted trial balance. The accountant can enter the adjusting entries into the software and can obtain the complete financial statements by simply selecting the reports from a menu. After reviewing the financial statements, the accountant can make additional adjustments and almost immediately obtain the revised reports. The software will also prepare, record, and post the closing entries.
Accounting Cycle - Accounting Analysis - Financial AccountingFaHaD .H. NooR
ย
What is the accounting cycle?
The accounting cycle is often described as a process that includes the following steps: identifying, collecting and analyzing documents and transactions, recording the transactions in journals, posting the journalized amounts to accounts in the general and subsidiary ledgers, preparing an unadjusted trial balance, perhaps preparing a worksheet, determining and recording adjusting entries, preparing an adjusted trial balance, preparing the financial statements, recording and posting closing entries, preparing a post-closing trial balance, and perhaps recording reversing entries.
Cycle and steps seem to be a carryover from the days of manual bookkeeping and accounting when transactions were first written into journals. In a separate step the amounts in the journal were posted to accounts. At the end of each month, the remaining steps had to take place in order to get the monthly, manually-prepared financial statements.
Today, most companies use accounting software that processes many of these steps simultaneously. The speed and accuracy of the software reduces the accountant's need for a worksheet containing the unadjusted trial balance, adjusting entries, and the adjusted trial balance. The accountant can enter the adjusting entries into the software and can obtain the complete financial statements by simply selecting the reports from a menu. After reviewing the financial statements, the accountant can make additional adjustments and almost immediately obtain the revised reports. The software will also prepare, record, and post the closing entries
Accounting cycle - this is a term given to the step-by-step process of recording and processing of economic transactions of a company. The accounting cycle helps in the creation of useful financial information in the form of financial statements.
Accounting Cycle - Journals - Capturing accounting eventFaHaD .H. NooR
ย
What is the accounting cycle?
The accounting cycle is often described as a process that includes the following steps: identifying, collecting and analyzing documents and transactions, recording the transactions in journals, posting the journalized amounts to accounts in the general and subsidiary ledgers, preparing an unadjusted trial balance, perhaps preparing a worksheet, determining and recording adjusting entries, preparing an adjusted trial balance, preparing the financial statements, recording and posting closing entries, preparing a post-closing trial balance, and perhaps recording reversing entries.
Cycle and steps seem to be a carryover from the days of manual bookkeeping and accounting when transactions were first written into journals. In a separate step the amounts in the journal were posted to accounts. At the end of each month, the remaining steps had to take place in order to get the monthly, manually-prepared financial statements.
Today, most companies use accounting software that processes many of these steps simultaneously. The speed and accuracy of the software reduces the accountant's need for a worksheet containing the unadjusted trial balance, adjusting entries, and the adjusted trial balance. The accountant can enter the adjusting entries into the software and can obtain the complete financial statements by simply selecting the reports from a menu. After reviewing the financial statements, the accountant can make additional adjustments and almost immediately obtain the revised reports. The software will also prepare, record, and post the closing entries
Accounting cycle is the part of the book on System of Accounting is presenting for readers wherein i tried a little to describe the subject concisely to following the concept within no time.
The format and the reason of making 8 column worksheet & closing entries is described in the presentation. I delivered this presentation in University Of Sufism and Modern Sciences.
Accounting Cycle - Accounting Analysis - Financial AccountingFaHaD .H. NooR
ย
What is the accounting cycle?
The accounting cycle is often described as a process that includes the following steps: identifying, collecting and analyzing documents and transactions, recording the transactions in journals, posting the journalized amounts to accounts in the general and subsidiary ledgers, preparing an unadjusted trial balance, perhaps preparing a worksheet, determining and recording adjusting entries, preparing an adjusted trial balance, preparing the financial statements, recording and posting closing entries, preparing a post-closing trial balance, and perhaps recording reversing entries.
Cycle and steps seem to be a carryover from the days of manual bookkeeping and accounting when transactions were first written into journals. In a separate step the amounts in the journal were posted to accounts. At the end of each month, the remaining steps had to take place in order to get the monthly, manually-prepared financial statements.
Today, most companies use accounting software that processes many of these steps simultaneously. The speed and accuracy of the software reduces the accountant's need for a worksheet containing the unadjusted trial balance, adjusting entries, and the adjusted trial balance. The accountant can enter the adjusting entries into the software and can obtain the complete financial statements by simply selecting the reports from a menu. After reviewing the financial statements, the accountant can make additional adjustments and almost immediately obtain the revised reports. The software will also prepare, record, and post the closing entries
Accounting cycle - this is a term given to the step-by-step process of recording and processing of economic transactions of a company. The accounting cycle helps in the creation of useful financial information in the form of financial statements.
Accounting Cycle - Journals - Capturing accounting eventFaHaD .H. NooR
ย
What is the accounting cycle?
The accounting cycle is often described as a process that includes the following steps: identifying, collecting and analyzing documents and transactions, recording the transactions in journals, posting the journalized amounts to accounts in the general and subsidiary ledgers, preparing an unadjusted trial balance, perhaps preparing a worksheet, determining and recording adjusting entries, preparing an adjusted trial balance, preparing the financial statements, recording and posting closing entries, preparing a post-closing trial balance, and perhaps recording reversing entries.
Cycle and steps seem to be a carryover from the days of manual bookkeeping and accounting when transactions were first written into journals. In a separate step the amounts in the journal were posted to accounts. At the end of each month, the remaining steps had to take place in order to get the monthly, manually-prepared financial statements.
Today, most companies use accounting software that processes many of these steps simultaneously. The speed and accuracy of the software reduces the accountant's need for a worksheet containing the unadjusted trial balance, adjusting entries, and the adjusted trial balance. The accountant can enter the adjusting entries into the software and can obtain the complete financial statements by simply selecting the reports from a menu. After reviewing the financial statements, the accountant can make additional adjustments and almost immediately obtain the revised reports. The software will also prepare, record, and post the closing entries
Accounting cycle is the part of the book on System of Accounting is presenting for readers wherein i tried a little to describe the subject concisely to following the concept within no time.
The format and the reason of making 8 column worksheet & closing entries is described in the presentation. I delivered this presentation in University Of Sufism and Modern Sciences.
This presentation is based on the subject Financial Accounting which helps the beginners to know the basic concept of accounting . This is according to the syllabus of Pt. Ravishankar University , Raipur and Durg University, Durg.
Trial balance and rectification of errorsItisha Sharma
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Trial balance and rectification of errors, Introduction- Specimen of a Trial Balance- Errors and their rectification โ Rectification of errors Rectification of errors detected after the preparation of Trial Balance but before the preparation of Final Accounts- Effect of errors on Profit โ Rectification of errors appearing after the preparation of Final Accounts
Financial Statements and Business Model Canvas_Nov5th.pptxRashmi Gowda KM
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In detail description about Financial Statements which includes Balance sheet, Income statement, Cash Flow and Statement of Retained Earning. Also there is explanation on Business Model Canvas
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your companyโs legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, weโll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
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"๐๐ฏ๐๐ซ๐ฒ ๐๐ฏ๐๐ง๐ญ ๐ข๐ฌ ๐ ๐ฌ๐ญ๐จ๐ซ๐ฒ, ๐ ๐ฌ๐ฉ๐๐๐ข๐๐ฅ ๐ฃ๐จ๐ฎ๐ซ๐ง๐๐ฒ. ๐๐ ๐๐ฅ๐ฐ๐๐ฒ๐ฌ ๐๐๐ฅ๐ข๐๐ฏ๐ ๐ญ๐ก๐๐ญ ๐ฌ๐ก๐จ๐ซ๐ญ๐ฅ๐ฒ ๐ฒ๐จ๐ฎ ๐ฐ๐ข๐ฅ๐ฅ ๐๐ ๐ ๐ฉ๐๐ซ๐ญ ๐จ๐ ๐จ๐ฎ๐ซ ๐ฌ๐ญ๐จ๐ซ๐ข๐๐ฌ."
Memorandum Of Association Constitution of Company.pptseri bangash
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www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
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Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
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Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
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Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
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HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
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3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
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A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
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Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
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Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Improving profitability for small businessBen Wann
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In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
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India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
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According to TechSci Research report, โIndia Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030โ, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
Attending a job Interview for B1 and B2 Englsih learnersErika906060
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It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
2. โข Review of 2 Basic Financial Statements
Balance Sheet
Income Statement
โข Statement of Retained Earnings
โข Temporary and Permanent Accounts
โข Closing Entries
โข Closing Temporary Accounts
Closing Revenue accounts to Income Summary.
Closing Expense accounts to Income Summary.
Closing Income Summary account to Retained Earnings.
Closing Dividends to Retained Earnings
โข Evaluating Business
Evaluating Liquidity
Evaluating Profitability
โข Problems
Contents
3. โข Balance Sheet
A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific
point in time.
(๐ด๐ ๐ ๐๐ก๐ = ๐ฟ๐๐๐๐๐๐๐ก๐๐๐ + ๐๐ค๐๐๐๐ ๐ธ๐๐ข๐๐ก๐ฆ)
โข Income Statement
It gives a summary of how the business incurs its revenues and expenses through both operating and non-
operating activities. It also shows the net profit or loss incurred over a specific accounting period.
(๐๐๐ก ๐ผ๐๐๐๐๐ = ๐ ๐๐ฃ๐๐๐ข๐ โ ๐ธ๐ฅ๐๐๐๐ ๐๐ )
Review of 2 Basic Financial Statements
4. โข Retained earnings is that portion of stockholdersโ (ownersโ) equity created by
earning net income and retaining the related resources in the business.
โข The statement of retained earnings summarizes the increases and decreases in
retained earnings resulting from business operations during the period.
โข Increases in retained earnings result from earning net income; decreases result
from net losses and from the declaration of dividends
โข The ending retained earnings appears at the bottom of the statement and also in
the companyโs year-end balance sheet.
Statement of Retained Earnings
6. Temporary & Permanent Accounts
TEMPORARY ACCOUNTS
Expense
Revenue
Dividends
Income Summary
PERMANENT ACCOUNTS
Assets
Liabilities
Owners Equity
Only Temporary Accounts are closed at the end of the period
7. Closing Entries (Introduction)
โข Closing entries are journal entries used to empty temporary accounts at the
end of a reporting period and transfer their balances into permanent accounts.
โข The closing entries are recorded after the financial statements for the
accounting year are prepared.
โข The reason for the closing entries is to ensure that each revenue and expense
account will begin the next accounting year with a zero balance.
โข The objective is to get the account balance to be zero.
โข There are four closing entries, which transfer all temporary account balances to
the owner's capital account.
8. 1. Close Revenue accounts to Income Summary.
2. Close Expense accounts to Income Summary.
3. Close Income Summary account to Retained Earnings.
4. Close Dividends to Retained Earnings
Closing Entries (Process)
9. โข Revenue accounts have credit balances.
โข Closing a revenue account means transferring its credit balance to the Income
Summary account.
โข This transfer is accomplished by a journal entry debiting the revenue account in
an amount equal to its credit balance, with an offsetting credit to the Income
Summary account.
โข The debit portion of this closing entry returns the balance of the revenue
account to zero.
โข the credit portion transfers the former balance of the revenue account into the
Income Summary account.
Closing Revenue Accounts
12. โข Expense accounts have debit balances
โข Closing an expense account means transferring its debit balance to the Income
Summary account
โข The journal entry to close an expense, therefore, consists of a credit to the
expense account in an amount equal to its debit balance, with an offsetting
debit to the Income Summary account.
Closing Expense Accounts
15. โข The amount in the Income Summary Account is the result of Debit and Credit
from the Expense account and Revenue accounts respectively.
โข The Income Summary account has Debit Balance if the Business is in profit,
otherwise the Income Summary account has a Credit Balance.
โข Closing an Income Summary account means transferring its balance to the
account of Retained Earnings, bringing the Income Summary account to zero.
โข After this closing entry has been posted, the Income Summary account has a
zero balance at the end of the year.
Closing Income Summary Account
18. โข Dividends to stockholders are not considered an expense of the business;
therefore, they are not taken into account in determining net income for the
period.
โข Since dividends are not an expense, the Dividends account is not closed to the
Income Summary account.
โข Instead, it is closed directly to the Retained Earnings account.
โข Since dividends have a natural debit balance, So they are credited from the
dividends account, and are debited to the account of Retained Earnings
Closing Dividends Account
21. 1. Closing the various revenue accounts and transferring their balances to the
Income Summary account.
2. Closing the various expense accounts and transferring their balances to the
Income Summary account.
3. Closing the Income Summary account and transferring its balance to the
Retained Earnings account.
4. Closing the Dividends account and transferring its balance to the Retained
Earnings account.
Summary of Closing Process
24. โข Liquidity ratios attempt to measure a company's ability to pay off its short-term
debt obligations.
โข This is done by comparing a company's most liquid assets with its short-term
liabilities.
โข The greater the coverage of liquid assets to short-term liabilities, the better a
company can pay its debts that are coming due in the near future.
โข A company with a low coverage rate should raise a red flag for investors as it
may be a sign that the company will have difficulty meeting running its
operations, as well as meeting its obligations.
Evaluating Liquidity
26. โข Profit is what is left over from income earned after you have deducted all costs
and expenses related to earning the income
โข Profitability ratios compare income statement accounts and categories to show
a company's ability to generate profits from its operations
โข Return on equity measures how much a company makes for each dollar that
investors put into it
โข Net Income reveals the remaining profit after all costs of production,
administration, and financing have been deducted from sales, and income taxes
recognized
Evaluating Profitability