What is accounting cycle? What is its relationship with
operating cycle?
In the steps to compile financial statements, explain a few
accounts that are more likely to be used to link these financial
statements.
What is accounting cycle? What is its relationship with
operating cycle?
In the steps to compile financial statements, explain a few
accounts that are more likely to be used to link these financial
statements.
Steps in the Accounting Cycle
Rearrange the following steps in the accounting cycle in proper
sequence:
a. Transactions are analyzed and recorded in
the journal.
1
b. An unadjusted trial balance is
prepared.
2
c. Transactions are posted to the ledger.
3
d. Adjustment data are assembled and
analyzed.
4
e. An adjusted trial balance is prepared.
5
f. Adjusting entries are journalized and
posted to the ledger.
6
g. An optional end-of-period spreadsheet is
prepared.
7
h. A post-closing...
What are the outputs of the accounting cycle? Why are they
important? Identify and explain the purpose of each financial
statement, including how they are interrelated.
Define in own words please
CHAPTER 4 – Completing the
Accounting Cycle
Accounting cycle
Closing entries
Closing process
Closing the books
Current liabilities
First closing entry
Fiscal year
Liquidity
Long-term liabilities
Current Ratio – write the equation for definition
Notes receivable
Reversing entries
Solvency
Temporary (nominal) accounts
Working capital – write the equation for definition