acct closing process

When you’re looking at the income statement, you can get information about profitability for a particular period. This is also called the profit and loss statement. The income statement is composed of both income and expenses. This statement can be used to deduct expenses from income and report either a net profit or net loss for that period. This statement will deduct all expenses from income and then report your net profit or net loss for that period. This will allow the business owner to determine if the business is bringing in a good amount of revenue to make a profit. The cash flow statement shows the movement in cash and balance over period. The cash flow can vary depending on the operating activities, investing and financing activities. This statement provides one business owner with insight to the company’s liquidity which is vital to the growth of the business. Reinvesting in business is very important, looking at the statement of retained earnings will tell a business owner how much were reinvested in the company. After profitable period, every big business has to give some of its profits to stockholders, and keep the rest amount as retained earnings. Out of all statements, retaining statement is important to companies that sells stocks to the public. This statement can also provide you with assets and liabilities information. These informations can be used to assess the financial health of your business. The results of a balance sheet will help the business owners to show the risk of liquidity and credit. Looking at these information you can measure trends and relationships to show where in the areas you can improve. These can also be compared to similar companies to show how the business measures up to leading competitors (Ali, 2010). In summary, the financial statements can provide a business owner

Wal-Mart Financial Analysis Report Michael Thomas ACC205: Principles of Accounting Instructor: Mark Stricklett November 10, 2014 Wal-Mart Financial Analysis Report 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

ACC 201 Final Project Part I Accounting Cycle Report Orlando Loaiza Southern New Hampshire University 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.

ACC 201 Final Project Part I Accounting Cycle Report Steven Maier Southern New Hampshire University Peyton Six Month Accounting Cycle Payton Approved, a new dog bakery opened in July 2014. To measure the businesses success the first six months are reviewed. The first topic will discover the steps of the accounting cycle with

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

(TCO 3) At the end of the period it is necessary to close all temporary accounts. (1) Explain why this process is required (15 points) and (2) provide an example of the closing of an

ACC 201 Final Project Part I Accounting Cycle Report Saheed Alabi Southern New Hampshire University   The purpose of accounting cycle report is to keep the best accounting records up to date. It also assist in producing the best possible financial statement that shows the true pictures of the business or organization and help

DeVry ACCT 212 Week 8 FINAL EXAM 1.     (TCO 3) At the end of the period it is necessary to close all temporary accounts. (1) Explain why this process is required (15 points) and (2) provide an example of the closing of an expense account, Salary Expense in the form of a journal entry.

Sofitech computers CASE LOgistics Activity Type: Individual Case Material/Resources You May Use: Open Book (Anything) Deliverable(s): One document not to exceed 4 pages (single-spaced). Appendices, tables and figures do not count towards page size limit. Background The following provides high-level information about auditing a fictional entity, called Sofitec Computers, created for this case study. This

Then closing the expense accounts, which transfers the balances in the expense account to a clearing account called income summary. Then closing the income summary account, which transfers the balance of the income summary account to the retained earning account. Finally, closing the dividends account, which transfers the balance of the dividends account to the retained earning account. The closing process is important because it reduces the revenue, expense, and dividends account balances to zero so they are ready to receive data for the next accounting period. The only account types that remain open are assets, liabilities, capital stock, and retained

4. How should the other costs (irrevocable contracts) be accounted for under GAAP? Summary Conclusion(s) on Accounting Questions: 1. Operating lease termination (modification): 2. One time employee termination benefits: 3. Relocation costs (including dismantling costs): 4. Other Costs: Authoritative and Interpretive Guidance Considered: Refer to SFAS 146 (June 2002 "Accounting for Costs Associated with Exit or Disposal Activities");

Client Understanding Paper ACC 541 5/26/2014 La Toyia Tilley Running head: CLIENT UNDERSTANDING PAPER 1 CLIENT UNDERSTANDING PAPER 2 Client Understanding Paper In the course of normal business operations certain transactions require specific treatment in accordance with generally accepted accounting procedures (GAAP). To properly prepare financial statements, the analysis of working papers is

COURSE INFORMATION Quarter – Winter 2013 Day/Time – Tuesdays, 6:00p.m.-10:00p.m. Instructor – Timothy E. Carr, CPA Instructor Email: timothy.carr@strayer.edu Instructor Phone: 901-359-8408 Instructor Office Hours – By Appointment COURSE DESCRIPTION This course provides a framework for financial accounting concepts and practices used by internal and external users in businesses. Topics presented include the accounting cycle, financial reporting, financial statements analysis, ratio calculation and interpretation, and management decision making based on financial results.

As part of this process, reciprocal accounts and intra-entity transactions must be adjusted or eliminated to ensure that all reported balances truly represent the single entity” (Hoyle, n.d.). The consolidation process varies depending if the business combo took place as a statutory merger/consolidation or if the companies remained as separate legal entities. With mergers/consolidations, consolidation should occur annually because the accounts of the parent and subsidiary were brought together permanently. With separate entities, the consolidated process starts brand new annually since there’s no permanent consolidation. So if the firm goes this route they’d have to consolidate each year through the use of worksheets. Attached is a demonstration of the worksheet that would be

The management of the company is responsible for the preparation of the financial statements. Financial statements of the company are significant for the investors who would like to venture into the business operation. It gives them the insight whether the business is making profits or it is doomed to fail;