Define in own words please CHAPTER 4 – Completing the Accounting Cycle Accounting cycle Closing entries...

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

Expert Solution

1. Accounting cycle

Accounting cycle is a process which includes 8 steps. It begins when a transaction occurs i.e with first step it includes identification transactions,
Second is recording entries into journal,
Third is to posting entries into ledger
Fourth will be adjusting the trial balance
Fifth is preparing a worksheet
Sixth is to record adjusting journal entries,
Sevnth is to adjust the trial balance
And last is to prepare trial balance.

Hence accounting cycle is a process which includes all the above steps

2. Closing entry

Closing entry is that entry which is posted into ledger account at the end of an accounting period and balance is tranfer to balance sheet.

3. Closing process

Closing process means an important end of year period step to making accounts. Closing process occurs at the end of accounting cycle when final transactions are posted into balance sheet and accounts are closed.

4. Closing the books

Closing the books means that all the transaction related to a particular account of a certain period is accounted in balance sheet and income statement and that information and transaction is accurate for that period is also to make sure.

ekkarill92 answered 1 year ago

3.2 Problem you will be responsible for completing the accounting cycle from adjusting entries to post-closing...

3.2 Problem you will be responsible for completing the accounting cycle from adjusting entries to post-closing trial balance. Below is the unadjusted trial balance for Walton Anvils as of December 31, 2016, and the data for the adjustments. There is also an Excel Template for this problem that you may download and use (or you may use your own). Walton Anvils Unadjusted Trial Balance December 31, 2016 Balance Account Title Debt Credit Cash $ 16,900.00 Accounts Receivable 17,500 Prepaid Rent...

Chapter 4: Completing the Accounting Cycle The end of period spreadsheet is useful in preparing an...

Chapter 4: Completing the Accounting Cycle The end of period spreadsheet is useful in preparing an Adjusted Trial Balance from which the three Financial Statements can be prepared. Please indicate the results in the adjusted Trial Balance under the following circumstances. Please provide an example. a. An account has a debit balance. The adjustment requires a credit to that account. The debit amount is higher than the credit amount. Is the result in the Adjusted Trial Balance a debit or...

Define in own words please CHAPTER 6 – Accounting for Merchandising Businesses Asset turnover Cost of...

Define in own words please CHAPTER 6 – Accounting for Merchandising Businesses Asset turnover Cost of merchandise sold – (5 points extra – if you can tell me what this is also known as) You will hear this acronym more often than Cost of merchandise sold… Credit memo Credit terms Debit memo FOB (free on Board) destination FOB (free on board) shipping point Gross profit Operating income Invoice Purchases discounts Purchases returns and allowances Sales discounts Trade discounts Administrative expenses...

Closing entries take place at the end of an accounting cycle. It is a vital part...

Closing entries take place at the end of an accounting cycle. It is a vital part of the accounting cycle to prepare to the company's annual financial statements as well as for the new fiscal year. -As a manager, what would be your procedure in setting up the closing process? What kind of policies would you put in place to avoid making mistake?

Define in own words CHAPTER 5 – Accounting Systems Accounting system Accounts payable subsidiary ledger Accounts...

Define in own words CHAPTER 5 – Accounting Systems Accounting system Accounts payable subsidiary ledger Accounts receivable subsidiary ledger Cash payments journal Cash receipts journal Controlling account e-Commerce General journal General ledger Internal controls Invoice Purchases journal Revenue journal Special journals Subsidiary ledger

This chapter covers closing the books and the accounting cycle. Assume you were recently hired to...

This chapter covers closing the books and the accounting cycle. Assume you were recently hired to be a bookkeeper of a small business. You find that the company had never completed an accounting cycle or closed the books and there were no records of any procedures about month end processes. How would go about your first month end to ensure accurate financial statements? Be specific in the steps you would take using QBO and any other factors. Use complete sentences,...

Why are closing entries required at the end of an accounting period?

Define an Accrued expense in your own words and give TWO examples OR journal entries of...

Define an Accrued expense in your own words and give TWO examples OR journal entries of an Accrued expense.

Answer each question with 100+ words 1. How would you define closing entries? 2. Why are...

Answer each question with 100+ words 1. How would you define closing entries? 2. Why are most closing entries completed at the end of the year? 3.Would you rather complete closing entries at year end or month end close? Explain. 4. Describe the nature of the Income Summary account, and identify the types of summary data that may be posted to this account. 5. Why do you think it is important to summarize account information before posting to the Retained...

Problem 21.2A Completing a corporate worksheet, recording adjusting and closing entries, preparing an income statement and...

Problem 21.2A Completing a corporate worksheet, recording adjusting and closing entries, preparing an income statement and balance sheet. LO 21-2, 21-3, 21-4, 21-11 Bruin Corporation has been authorized to issue 5,000 shares of 12 percent noncumulative, nonparticipating preferred stock with a par value of $100 per share and 200,000 shares of common stock with a par value of $10 per share. As of December 31, 2019, 2,600 shares of preferred stock and 19,000 shares of common stock had been issued....

Question