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  • Chapter 4 - Completing The Accounting Cycle

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    Lê Nguyễn Anh Thư
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    The accounting cycle is a series of steps performed internally by companies to help adjust and close accounts and prepare financial statements. It involves identifying accounts that need closing, recording closing entries to transfer temporary account balances to capital, and producing a post-closing trial balance where total debits equal credits and temporary accounts have zero balances. This helps prepare financial statements and reduces errors.

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    Chapter 4 - Completing the Accounting Cycle

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    The accounting cycle is a series of steps performed internally by companies to help adjust and close accounts and prepare financial statements. It involves identifying accounts that need closing, recording closing entries to transfer temporary account balances to capital, and producing a post-closing trial balance where total debits equal credits and temporary accounts have zero balances. This helps prepare financial statements and reduces errors.

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    © All Rights Reserved
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    3 views1 page

    Chapter 4 - Completing The Accounting Cycle

    Uploaded by

    Lê Nguyễn Anh Thư
    The accounting cycle is a series of steps performed internally by companies to help adjust and close accounts and prepare financial statements. It involves identifying accounts that need closing, recording closing entries to transfer temporary account balances to capital, and producing a post-closing trial balance where total debits equal credits and temporary accounts have zero balances. This helps prepare financial statements and reduces errors.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 1

    ‎Accounting cycle

    ‎ sed internally by companies to help with


    u
    ‎adjusting and closing accounts and with
    ‎ list of permanent accounts and their
    a ‎preparing financial statements.
    ‎balances after all closing entries. Total debits
    ‎equal total credits for permanent accounts ‎Post-closing Trial Balance ‎ elps in preparing financial statements.
    H
    ‎and all temporary accounts have zero ‎Reduces the risk of errors when working with
    ‎balances. ‎many accounts and adjustments. Links
    ‎Work sheet ‎accounts and adjustments to financial
    ‎statements. Shows the effects of proposed
    ‎ ompleting the
    C ‎or "what-if" transactions.

    ‎Accounting Cycle
    ‎ ccurs at the end of an accounting period
    o
    ‎after financial statements are completed.

    ‎Flow of work sheet

    ‎Identify accounts for closing

    ‎ emporary accounts need to close at the


    T
    ‎end of period.
    ‎Closing process
    ‎ losing entries transfer the end-of-period
    C
    ‎balances in revenue, expense, and
    ‎withdrawal accounts to the permanent
    ‎capital account. Closing entries are
    ‎necessary at the end of each period after
    ‎financial statements are prepaid.

    ‎Recording closing entries

    ‎The flow of closing entries

    ‎Subtopic 3

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