Scribd Logo
Upload

Welcome to Scribd!

  • ACTG

    Uploaded by

    Kimberly Permison
    6 views2 pages
    This document outlines key steps in the accounting cycle and concepts in accounting. It discusses the accounting cycle which includes identifying transactions, recording journal entries, posting to the general ledger, preparing an unadjusted trial balance, making adjusting entries, preparing an adjusted trial balance, and preparing financial statements. It also discusses different business structures, fiscal years, cash vs. accrual accounting, depreciation, prepaid expenses, current liabilities, equity, revenue, expenses, and inventory methods.

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    TXT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document outlines key steps in the accounting cycle and concepts in accounting. It discusses the accounting cycle which includes identifying transactions, recording journal entries, posting to the general ledger, preparing an unadjusted trial balance, making adjusting entries, preparing an adjusted trial balance, and preparing financial statements. It also discusses different business structures, fiscal years, cash vs. accrual accounting, depreciation, prepaid expenses, current liabilities, equity, revenue, expenses, and inventory methods.

    Copyright:

    © All Rights Reserved
    Download as TXT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    6 views2 pages

    ACTG

    Uploaded by

    Kimberly Permison
    This document outlines key steps in the accounting cycle and concepts in accounting. It discusses the accounting cycle which includes identifying transactions, recording journal entries, posting to the general ledger, preparing an unadjusted trial balance, making adjusting entries, preparing an adjusted trial balance, and preparing financial statements. It also discusses different business structures, fiscal years, cash vs. accrual accounting, depreciation, prepaid expenses, current liabilities, equity, revenue, expenses, and inventory methods.

    Copyright:

    © All Rights Reserved
    Download as TXT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    ACCOUNTING CYCLE

    1. Identify and analyze transactions


    2. Record Journal Entries
    3. Post to general ledger
    4. Prepare unadjusted Trial Balance
    5. Make Adjusting Entries
    6. Prepare adjusted trial balance
    7. Prepare FS
    8. Make closing entries

    NOTE:
    Equity=Capital

    1. INFORMAL BUSINESS STRUCTURE


    - Sole / partnership
    * up to personal asset
    //sole - no salary but based on tax return

    2. FORMAL BUSINESS STRUCTURE


    - lcc / corporation
    * Asset protection
    one person llc
    -limited liability corporation

    FISCAL YEAR
    - Calendar - janto dec

    US - Cash accounting

    ACCRUAL
    - Record every transaction
    *even in cash basis

    FILE IN TAX
    - Cash accounting to see the
    current cash

    DEPRECIATION EXPENSES
    // Straight line basis
    FORMULA: (cost-salvage value)/useful life

    PREPAYMENT
    Prepaid asset=prepaid exp
    - paid in advance and consume in a period
    ex: prepaidinsurance
    // to adjust in the future to expenses

    LIABILITY
    /CURRENT
    1. Unearned Revenue
    - customer paid in advance but seller not yet incured

    EQUITY
    BEG Balance
    Share capital(invest)
    Ratained Earnings (Accumulated p/l past years of the company)
    Profit for the year
    TOTAL EQUITY
    SALES
    -nabenta
    REVENUE
    -nabenta+ others income

    revenue not = profit

    EXPENSES
    1. Selling
    - related in sales
    2. G&A

    PERPETUAL
    - INCLUDE IN INV
    PERIODIC
    -

    You might also like