...Accounting Cycle Specified In Nine Steps Abstract The accounting cycle is a series of steps repeated in a reporting period. The account cycles consist of nine steps. The series of steps are analyze business transactions, journalize business transactions, post a business transaction, prepare a trial balance, journalize-post adjusting entries, prepare an adjust trial balance, Prepare financial statements, closing account, and post closing trial balance. Each steps has its own purpose to allow the accounting cycle to function and be able to prepare financial statements based on this procedure. The accounting cycle can be explained in a series of more steps, but this the account cycle in a nine step series. Accounting Cycle Explained in Nine Steps The Accounting cycle is specified as a series of nine steps used to gather and process financial information during a reporting period. The nine steps in the accounting cycle are analyzing business transactions, journalize transactions, post to ledger accounts, prepare a trial balance, post adjusting entries, prepare a adjusted trial balance, prepare financial statements, post closing entries, and prepare-a post closing trial balance. The accounting cycle is repeated in each reporting period, which involves recording transactions in order to prepare financial statements such as an income statement, statements owner’s equity, and a trial balance for proper external and internal decision making. The accounting cycle...
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...The Process of the Accounting Cycle The process that goes through analyzing and journalizing transactions and is finished with a post-closing trial balance is the accounting cycle. The accounting cycle reports the financial information during the accounting period. It has 10 steps. In order to do it all correct it is better to follow step by step, instead of rushing it then later have problems with the number not adding up. Here all the steps and the explanations throughout the accounting cycle. First step is that the transactions are analyzed and recorded in the journal. In easier terms, you look at the transactions that happened during the accounting period and then enter them into the journal. To make sure, that everything is done right follow four easy steps. Read each description of the transactions to know if an asset, liability, owner’s equity, revenue, expense or drawing account is affected. Then next look at each account and see if it increases or decreases. After you determine that, the record them as debit or credit by following the rules of debit and credit. An example, since asset accounts are increased with debits, they normally have debit balances, and liabilities usually have a credit balance. After all that, then you record each transaction using a journal entry. The second step of the accounting cycle is posting the transactions to the ledger. Transactions that are entered into the journal are then posted to the accounts in the ledger. Debits and credits...
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... | | |Financial Accounting Concepts and Principles | Copyright © 2010, 2009 by University of Phoenix. All rights reserved. Course Description This course covers the fundamentals of financial accounting as well as the identification, measurement, and reporting of the financial effects of economic events on the enterprise. Financial information is examined from the perspective of effective management decision making with special emphasis on the planning and controlling responsibilities of practicing managers. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must be logged into the student website to view this document. • Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial accounting (6th ed.). Hoboken, NJ: Wiley. All electronic materials are available on the student website....
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...one way or another. That is where accounting will play a role in their lives. The students will know the primary objectives when it comes to accounting. The students will also be explained about the basic terminology of the accounting process. They will also be explained about how accounting has affected my personal life and also the ethics of my personal life. Accounting is also a process that deals with different types of math. Accounting also deals with recording, transactions, credits, interpreting and summarizing just about everything that has to do with numbers. It is very important that a person in the career field of accounting performs a flawless job in the outcomes of their work. A mistake as little as being off by one number can make a huge difference in the overall work that has been done. Accountants may need to go over the work more than once just to make sure that the numbers they have recorded or precise. That is what the students will need to know when it comes to the life of an accountant. It is also important in their everyday life if they feel as though they may need to be on a budget, trying to save or invest money or trying to be sure that they do not overspend the money they have if they are not trying to be on a budget. Accounting is the language of a business and anything that has to do with money has to do with accounting. They go hand-in-hand and one cannot be one without the other. PRIMARY OBJECTIVE OF ACCOUNTING The primary objective of an accountant...
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...Syllabus School of Business XACC/290 Version 1 Principles of Accounting I Copyright © 2013 by University of Phoenix. All rights reserved. Course Description This course covers the fundamentals of financial accounting as well as the identification, measurement, and reporting of the financial effects of economic events on an enterprise. Students will learn to examine financial information from the perspective of management. Other topics include decision-making, planning, and controlling from the perspective of a practicing manager. Policies Faculty and students will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must be logged into the student website to view this document. • Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2011). Financial accounting: Tools for business decision making (6th ed.). Hoboken, NJ: John Wiley & Sons. All electronic materials are available on the student website. Week One: Basic Accounting Principles and Concepts Details Due Points Objectives 1.1 Identify...
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...WAlmart | Accounting Cycle Paper | Accounting Cycle of Walmart | | Melanie Bartholomew | September 2, 2012 | When a company, like Walmart, begins to prepare financial statements and reports at the end of an accounting cycle they generally use Generally Accepted Accounting Principles and “the collective process of recording and processing the accounting events” (Definition of ‘Accounting Cycle’, 2012), known as the accounting cycle. There are nine steps involved in the accounting cycle. Walmart would begin the process by collecting and analyzing data from their events and transactions. Next, the company puts those transactions into a general journal. After journalizing their transactions the company posts these entries to the general ledger. The next step in the accounting cycle is to prepare an unadjusted trial balance. Once the unadjusted trial balance is completed the company makes the appropriate adjustments and then prepares an adjusted trial balance. Adjustment entries are made to ensure the company follows revenue recognition and the matching principle and report appropriate assets, liabilities, and owner’s equity at the statement date; and ensure proper reporting of revenues and expenses for the accounting period. This is an important step in the accounting process because the data in the unadjusted trial balance may not be up-to-date and complete. This happens because not all events require daily journalizing and because the company may have some costs that...
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...DQ1 What are the steps in completing the accounting cycle? Discuss the relationship between the amounts on the adjusted trial balance for an account and its ledger? Discuss the relationship of the adjusted trial balance and the amount on the financial statements? What is the effect on the financial statements of missing a step when completing the accounting cycle? There are nine steps to completing an accounting cycle which are: ϖ Analyze business Transactions ϖ Journalize the Transactions ϖ Post to ledger accounts ❖ Prepare a trial balance ❖ Journalize and post adjusting entries: Prepayments/Accruals ❖ Prepare an adjusted trial balance ❖ Prepare financial statements: Income statement Retained earnings statement Balance sheet ϖ Journalize and post closing entries ϖ Prepare a post-closing trial balance Account balances are transferred from the ledge onto the trial balance for review and adjustments, if necessary. The adjusted trial balance states a list of company’s accounts, and the balance of the account. A discrepancy found in the trial balance is adjusted to disclose accurate balance. After the account balances are entered onto the trial balance, the two columns are totaled. The totaled credit balance must be the same as the totaled debit balance; if not the trial balance is reviewed to find any errors in posting or journalizing. The...
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...11/17/2013 The Accounting Cycle AC114 Accounting has three basic activities; it identifies, records, and communicates the numbers to the interested parties of the company. The internal users who rely on accounting information are the people who plan, organize, and run the business. The most common external users that rely on the accounting information are investors and creditors, because neither of the two would invest into a business with inaccurate accounting information. To ensure accuracy we have to follow the accounting cycle which has nine steps. The first step is to analyze the business transactions because it identifies the economic events relevant to its business. When we analyze we figure out whether a transaction is an asset, liability, or owner’s equity. Next we would journalize the transaction data into a journal. This process contributes to the recording process of the accounting cycle because it discloses the effects of a transaction, provides a chronological order, and helps prevent or locate errors of a transaction. When we journalize we would separate each transaction by date, amount, and description. Journalizing means we would post the information to a general ledger. The ledger is helpful because it takes all the information about changes in specific account balances and keeps it in one place. The ledger would provide the balance of each account and arranged in sequence as it would show on the financial statement. The accounts are numbered for easier...
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...The accounting process starts by analyzing transactions and source documents that describe transactions and events. Examples of source documents are bank statements, checks and purchase orders. After we have analyzed the transactions, events and source documents, we are ready for the next step, journalizing. Journalizing is the process of recording a transaction in the journal. To do this we 1) record the date of the transaction in the date column, 2) the title of the account to be debited is recorded at the left hand margin under the description column, and the amount to be debited is entered in the debit column, 3) the title of the account to be credited is listed below and to the right of the debited account title, and the amount to be credited is listed in the credit column,4) a brief description may be entered below the credited account, 5) the Posting Reference column is left blank when the journal entry is initially recorded, when transferring to the ledger, this column will be utilized. In double entry accounting the debits must equal the credits. The second step in the accounting cycle is to post. When posting we transfer the debits and credits from the journal to the ledger. This is done by 1) the date of the journal entry is entered in the date column, 2) the amount is entered into the debit column for the correct posting title, 3) the journal page number is entered in the Posting Reference column and 4) the account number is entered in the Posting Reference column...
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...Assignment #1 Accounting 2- SP 5- Hanson Due Friday March 13, 2015 11:00 P.M. Pacific Standard Time Your answers should be brief and in proper English. Download this file, answer the questions, save the file and upload into the Drop Box for this assignment Chpt 13. (Your answers should be included inside this document.) 1. Name: Xiangyu Liu 3. Major Economic 4. Purpose for taking this course? E.G. Work requirement, CPA Exam, AA, Transfer Transfer 5. Do you have a degree already? If yes, what is your degree in? No 6. Are you working? If yes are you working fulltime or part? ______No____ In what Industry are you currently employed? 7. If you are working, what is your title ________No___________ What do you do? (Brief) 8. How many units are you currently enrolled in this session? _____12______ 9. Do you have internet access at home? _____Yes______ 10. On a scale of 1 to 10 rate your Computer skills as they relate to Excel. ____6_____ General Accounting Fundamentals 11. What is the Accounting Equation? Assets=liabilities + equity 12. What is the Purpose of a Chart of Accounts? The chart of accounts is a listing of all accounts used in the general ledger of an organization. The chart is used by the accounting software to aggregate information into an entity's financial statements...
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...ACCT 212 (FINANCIAL ACCOUNTING) COMPLETE COURSE A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=financial-accounting-complete-course Visit Our website: http://hwsoloutions.com/ Product Description ACCT 212 (FINANCIAL ACCOUNTING) COMPLETE COURSE, ACCT 212 COURSE PROJECT 1 PART A WEEK 3 ACCT 212 COURSE PROJECT 1 PART B WEEK 5 Scenario: You’ve just secured a new client in your accounting practice, the Rawls Repair Corporation, (RRC) a brand new small business specializing in bicycle repair… ACCT 212 Course Project 2 Week 7 P13-50A Top manager of O’Hare Products, Inc., have asked for your help in comparing the company’s profit performance and financial position with the average… ACCT 212 Midterm Exam (TCO 1) The Accounting Equation is used to develop the organization’s financial reports. (1) Describe what owners’ equity values would be if Assets are $100,000 and Liabilities are $27,000 by showing the Accounting Equation (10 points) and (2) provide an explanation of what accounts could be found in owners’ equity. (10 points) (Points : 20) (TCO 1) The Accounting Equation is used to develop the organizations financial reports. (1) Describe what assets value would be if Liabilities are $12,000 and Owners’ Equity is $50,000 by showing the Accounting Equation (10 points) and (2) provide an example of two asset accounts that could contain the value. (10 points) (Points : 20) (TCO 1) The financial statements present a company to the public in financial...
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...delivery systems. These services are provided through an integrated health care delivery approach which gives the System the ability to deliver a full range of health care products and services to the communities it serves. This network identified that traditional payment processing system had limitations that hindered the effective collecting of revenue. These limitations were associated with limited access to accurate information by the account representatives, ineffective performance measures and fragmented centers of service provision. The Sutter health program developed a system that comprised of solutions geared towards overcoming these limitations. This paper will discuss Sutter Health key problems and issues, solutions, results, accounting practices, alternative approach, informed opinion, and the conclusion. The California Sutter Health Approach Sutter Health is a non- for-profit community based healthcare and hospital system based in Sacramento, CA. Sutter Health faced several problems, but the key problem was, Souza and McCarty wrote an article, "From Bottom to Top: How One Provider Retooled its Collections," that provided data from research indicating how this healthcare system reputed to be on the list of the largest health care providers in Northern California maneuvered into implementing a whole new strategy on how to increase collections. When collecting payments from new patients, services provided, comes from the need to...
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...Chapter One As accounting students we have studied a variety of accounting areas involving financial and taxes. The accounting information course appears to be a course that heads in a different direction then what we as students have become accustomed to. Speaking for myself I have always been drawn to the accounting field because it is a black and white area. In other words, there it is organized and has right and wrong answers, this leaving out the gray areas between right and wrong. Accounting information systems appears to be throwing us into a whole new area of the study of accounting. The fine line between right and wrong is becoming smudged into a gray area. With accounting information system we are being thrown into an area that is now unfamiliar to what we have come to know as right or wrong. This accounting information system is designed to help us think outside of the box by providing unstructured problems that will increase our ability to develop professional judgment, our confidence in our ability, and use more critical thinking. The conceptual framework was developed in the late 1970’s by the FASB to be used as a guide for accounting principles. The conceptual framework is set up as a pyramid that has three levels. The top level provides the objective of financial reporting: provide information to decision makers, the second or middle level is divided into two parts, one part is aimed at the elements of financial statements and the second part is geared towards...
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...it does best, why it does what it does and what it needs to do to stay focused and gain market share. It has a clear vision of why the business exists and what measurable results are expected to keep it winning for a long time. The purpose of a business is to give the owner what he or she wants. In publicly traded companies, stockholders want three things: quarterly earnings or profits, increasing stock values and revenue growth. Operations Management: Operations Management is more about running the entire business than just the production line, and involves accounting, pay, personnel, shipping, and all aspects of a business. The point of operations management is to fully integrate all operations so the company operates as an integrated coordinated whole, rather than as separate, independent departments each doing their own thing. The operations manger need to look at ways to coordinate purchasing, accounting, planning, production, personnel, maintenance and training. If any one of these becomes disconnected from the others, then you get bottlenecks outside of the production line that slow down production. For instance, if personnel does not hire enough electricians, then the installation of wiring slows down. On the other hand if the production manager does not communicate to personnel how many people they need and when, personnel won't hire them. So all functions have to be a coordinated effort. Why strategic operations management is necessary in construction firms: ...
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...Chapter 9 Multiple-Choice Questions |1. |If it is probable that the judgment of a reasonable person would have been changed or influenced by the omission or misstatement of information, then| | |that information is, by definition of FASB Statement No. 2: | | |a. material. | | |b. insignificant. | | |c. significant. | | |d. relevant. | | | | |2. |The preliminary judgment about materiality is the amount by which the auditor believes the statements could be misstated and | | |still not affect the decisions of reasonable users. ...
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