In this chapter, students will be able to understand: Define the accounting period, the time period principle, the revenue recognition principle and the matching principle; differentiate between the cash basis and accrual basis of accounting; explain what adjusting entries are and why they are needed;...
This chapter include objectives: Prepare an accounting worksheet and describe its purpose, Prepare a classified balance sheet and explain the major headings, explain why closing entries are recorded in the accounts, Prepare closing entries, prepare a post-closing trial balance, explain the steps in the complete accounting cycle, explain the differences in the accounting cycle for partnerships and corporations.
Lecture Principles of financial accouting, chapter 4 - Completing the accounting cycle. After completing this chapter you should be able to: Explain why temporary accounts are closed each period, identify steps in the accounting cycle, explain and prepare a classified balance sheet.
In our recent book, Free Cash Flow and Shareholder Yield: New Priorities
for the Global Investor (John Wiley & Sons, 2007), we offered a comprehensive
introduction to the opportunities and challenges inherent in today’s
equity markets. By looking beyond the many obfuscations of traditional
generally accepted accounting principles (GAAP) accounting, we endeavored
to provide the informed investor with the tools necessary to navigate a
changing investment landscape.
Chapter 2 - The accounting cycle: During the period. In this chapter you will learn: Identify the basic steps in measuring external transactions, analyze the impact of external transactions on the accounting equation, assess whether the impact of external transactions results in a debit or credit to an account balance, record transactions using debits and credits, post transactions to t-accounts in the general ledger, prepare a trial balance.
Chapter 3 - The accounting cycle: Eend of the period. After studying this chapter, you should be able to: Understand when revenues and expenses are recorded, distinguish between accrual-basis and cash-basis accounting, demonstrate the purposes and recording of adjusting entries, post adjusting entries and prepare an adjusted trial balance.
The learning objectives in this chapter are: Record basic accrual and deferral events in a horizontal financial statements model; organize general ledger accounts under an accounting equation; prepare financial statements based on accrual accounting; describe the closing process, the accounting cycle, and the matching concept; explain how business events affect financial statements over multiple accounting cycles.
Chapter 7 - Long-term assets. After reading the material in this chapter, you should be able to: Identify the major types of property, plant, and equipment; identify the major types of intangible assets; describe the accounting treatment of expenditures after acquisition; calculate depreciation of property, plant, and equipment; calculate amortization of intangible assets; account for the disposal of long-term assets.
Chapter 8 - Current liabilities. When you finish this chapter, you should: Distinguish between current and long-term liabilities, account for notes payable and interest expense, account for employee and employer payroll liabilities, explain the accounting for other current liabilities, apply the appropriate accounting treatment for contingencies, assess liquidity using current liability ratios.
Upon completion of this chapter you should understand: Basic concepts associated with the Income Statement, basic concepts associated with the Balance Sheet, cash flow and cash flow statements, financial statement generation and the accounting equation, other types of financial statements.
After studying this chapter you will be able to: Accounting equation entries applied to capital costs and expenses and their impact on financial statements; depreciation methods, calculating depreciation and book value of assets and the affect on profit, taxes and cash flow; inventory management and the affect on the accounting equation; financial statement ratios and their use for economic decision making.
Chapter 4: Completing the accounting cycle. After completing this chapter you should be able to: Explain why temporary accounts are closed each period, identify steps in the accounting cycle, explain and prepare a classified balance sheet.
In this chapter, students will be able to understand: Identify the steps in the accounting cycle and discuss the role of accounting records in an organization, describe a ledger account and a ledger, understand how balance sheet accounts are increased or decreased, explain the double-entry system of accounting,...
After studying this chapter you will be able to understand: Where do we get the amounts to enter in the Unadjusted Trial Balance columns of a work sheet? What are the advantages of using a work sheet to help prepare adjusting entries? What are the overall benefits of a work sheet? What are the major steps in preparing closing entries?...
Lecture "International accounting - Chapter 2: Completing the accounting cycle" has content: The worksheet, completing the accounting cycle, closing the accounts, post closing trial balance, classifying assets and liabilities, accounting ratios.
Lecture "International accounting - Chapter 4: Merchandising operations" has content: What are merchandising operations, accounting for inventory in the perpetual system, adjusting and closing the accounts of a merchandiser, preparing a merchandiser’s financial statements, three ratios for decision making.
Chapter 4 - Completing the accounting cycle. After completing this chapter you should be able to: Explain why temporary accounts are closed each period, identify steps in the accounting cycle, explain and prepare a classified balance sheet.
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The accounting department is a cost center. It does not directly generate revenues,
but rather provides a fixed set of services to the rest of a company, and is asked to
do so at the lowest possible cost. Consequently, the accounting staff is called
upon to process transactions, write reports, create new processes or investigate
old ones—while doing so as an ever-shrinking proportion of total expenses.
FLOYD A. BEAMS, PH.D., authored the first edition
of Advanced Accounting in 1979 and actively revised his text
through the next six revisions and twenty-one years while maintaining
an active professional and academic career at Virginia
Tech where he rose to the rank of Professor, retiring in 1995.
Beams earned his B.S. and M.A. degrees from the University
of Nebraska, and a Ph.D. from the University of Illinois.