The Accounting Cycle And The Auditing Cycle

In accounting there is much to be learned, about the financial aspects of a business. In the past five weeks I have learned the importance of financial reports and how they relate to the success of an establishment. These reports may include balance sheets and income statements, which help accountants and the public grasp the overall financial condition of a company. The information in these reports is really significant to, managers, owners, employees, and investors. Managers of a business can take and deduce financial

Microsoft is traded on the NASDAQ stock market using the ticker symbol is MSFT. The current stock price as of October 14th 2015 is $46.84. The trading range over the past year has been between $39.72 and $50.05. The dividend rate is $1.44 and their yield is 3.06.

Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of

* Documents used: customer order, sales order, shipping document, sales invoice, sales journal, remittance advice, bank deposit list, cash receipts jornal, credit memo, sales return and allowance journal, uncollectable account authorization form, a/r master file, a/r trail balance, monthly statement

An accounting cycle is a process, or a series of activities, that consists of collecting an organization’s transactions at the end of a reporting period to prepare essential financial statements of a business (Fleury, 2015). The accounting cycle is a strict, methodical set of rules used to ensure the accuracy and conformity of financial statements (Investopedia, 2017). The steps involved with an accounting cycle, the roles each of the step facilitate, the impact of omission, and what financial statements are assembled from the accounting cycle data.

Accounting is a product of many estimates and judgments. It is essentially a rear-view mirror, looking back at what has happened. To add to the problem the view changes with each new accounting period.

According to Financial and Managerial Accounting, the accounting cycle is the approach companies use to create their financial statements

Accounting is commonly described as the language of business. It is very important for all business owners to have very good understanding of their finances. Having the knowledge of your business finance, you will know where the money is going. Every business owner should have a good understanding of finance. To have a good understanding business owners needs to understand basic accounting steeps, how does accounting play a role in their business, how to define a financial statement and how the omission of any of these steps would affect the success of a business. Once you have an understanding of accounting/finance and the how it plays

Peyton Approved accounting cycle comprises of the following steps– transactions, journal entries, posting, trial balance and worksheet, adjusting journal entries, financial statements and closing of the books (Tarver, E, 2106). As a new company up and coming we have to make sure our payables, receivables, bank recs and all sales have been noted. Also making sure that wages or expenses that are accrued are recorded. We have found that these steps are instrumental as a company when it’s time to prepare our

You may omit explanations of the transactions. Skip a line between eah set of journal entries.

Baruch Lev and Feng Gu authors of “The End of Accounting and The Path Forward for Investors and Managers” indicate that over the past 110 years, the structure and content of financial reports has not changed, and that the role that these reports play in influencing the decisions of investors has greatly diminished. Lev and Gu make a case that non-transaction events that are not captured by the financial reports such as those disclosed through 8-k filings with the Securities and Exchange Commission (“SEC”) have a greater impact on stock prices, and thus more useful to investors. In addition, they suggest that one of reasons for the decline in usefulness of financial reports stems from the increase of estimates that has made its way into these reports (Lev and Gu 2016).

According to our textbook, Pearson's Comprehensive Medical Assisting, there are seven steps in the accounts receivable cycle:

with a new partner, Harry Fowl. Harry has had some existing business and you are