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The Accounting Cycle

The Accounting Cycle
4,5 (72 vurderinger) Les omtaler
ISBN: 978-87-7681-486-1
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Sider : 98
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Om boken

  1. Vurderinger
  2. Beskrivelse
  3. Innhold

Vurderinger

Adrean JH Mwale ★★★★★

Very Good

Rehan Saleem ★★★☆☆

Excellent & provides basic understanding of the core subject.

Beskrivelse

This book is the first of seven books which introduces the basic principles of accounting. It introduces accounting, the fundamental accounting equation, and four core financial statements. Students will learn the basics of accounting, such as debits and credits, the journal, and trial balance, income measurement, revenue and expense recognition, and the reporting cycle. With a foundation in these basics of accounting readers are introduced to financial statement preparation, the accounting cycle, closing entries, classified balance sheets, the importance of business liquidity, and the concept of the operating cycle.

Innhold

  1. Part 1: Welcome to the World of Accounting
  2. Accounting Information
    1. Accounting Defined
    2. Financial Accounting
    3. Managerial Accounting
    4. A Quality Information System
    5. Inherent Limitations
  3. The Accounting Profession and Careers
    1. Accounting and Professional Ethics
  4. The Fundamental Accounting Equation
    1. Assets
    2. Liabilities
    3. Owners’ Equity
    4. Balance Sheet
  5. How Transactions Impact the Accounting Equation
    1. Edelweiss Collects an Account Receivable
    2. Edelweiss Buys Equipment With Loan Proceeds
    3. Edelweiss Provides Services to a Costumer on Account
    4. Edelweiss Pays Expenses With Cash
    5. Generalizing About the Impact of Transactions
    6. Distinguishing Between Revenue and Income
  6. The Core Financial Statements
    1. Financial Statements
    2. Income Statements
    3. The Statement of Retained Earnings
    4. Balance Sheet
    5. Statement of Cash Flows
    6. Articulation
    7. Unlocking the Mystery of Articulation
  7. Part 2: Information Processing
  8. Accounts, Debits and Credits
    1. Accounts
    2. Debits and Credits
    3. The Fallacy of “+/-” Nomenclature
    4. The Debit/Credit Rules
    5. Assets/Expenses/Dividends
    6. Liabilities/Revenues/Equity
    7. Analysis of Transactions and Events
    8. Determining an Account’s Balance
    9. A Common Misunderstanding About Credits
  9. The Journal
    1. Illustrating the Accounting Journal
    2. Special Journals
    3. Page Numbering
    4. But, What are the Account Balances?
  10. The General Ledger
    1. Posting
    2. To Review
  11. The Trial Balance
    1. Debits Equal Credits
    2. Financial Statements From the Trial Balance
  12. Computerized Processing Systems
    1. What do they Look Like
  13. T-accounts
    1. Comprehensive T-accounting Illustration
    2. Chart of Accounts
    3. Control and Subsidiary Accounts
  14. Part 3: Income Measurement
  15. "Measurement Triggering” Transactions and Events
    1. The Meaning of “Accounting” Income
    2. More Income Terminology
    3. An Emphesis on Transactions and Events
  16. The Periodicity Assumption
    1. Accounting Implications
  17. Basic Elements of Revenue Recognition
    1. Payment and Revenue Recognition
  18. Basic Elements of Expense Recognition
    1. Payment and Expense Recognition
  19. The Adjusting Process and Related Entries
    1. Illustration of Prepaid Insurance
    2. Illustration of Prepaid Rent
    3. I’m a Bit Confused – Exactly When do I Adjust?
    4. Illustration of Supplies
    5. Depreciation
    6. Unearned Revenues
    7. Accruals
    8. Accrued Salaries
    9. Accrued Interest
    10. Accrued Rent
    11. Accrued Revenue
    12. Recap of Adjustments
    13. The Adjusted Trial Balance
    14. Alternative Procedures for Certain Adjustments
  20. Accrual- Versus Cash-Basis Accounting
    1. Modified Approaches
    2. Illustration of Cash-Versus Accrual Basis Accounting
  21. Part 4: The Reporting Cycle
  22. Preparing Financial Statements
    1. An Illustration
    2. Considering the Actual Process for Adjustments
    3. Financial Statements
    4. Computerization
    5. A Worksheet Approach
    6. An Additional Illustration
  23. The Accounting Cycle and Closing Process
    1. The Closing Process
    2. Post Closing Trial Balance
    3. Revisiting Computerization
  24. Reversing Entries
  25. Classified Balance Sheets
    1. Assets
    2. Liabilities
    3. Equity
    4. Other Entity Forms
    5. Notes to the Financial Statements
  26. Business Liquidity and the Operating Cycle
    1. Working Capital
    2. Current Ratio
    3. Quick Ratio
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