ACC 201FinalProject Part IAccounting Cycle Report
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Southern New Hampshire University
Accounting cycle is the term that is used to describe the process of recording and dealing with transactions of an entity. In this paper, we are going to describe the steps that are followed in the accounting cycle and the part that each step plays in ensuring that the financial statements that are finally produced from the records reflect a true and fair view of the company’s financial position. We will examine the consequences that might follow if one of the steps is omitted. Finally, we will look at the financial statements that come out of the accounting cycle and their importance. The first step of the accounting cycle is journal
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It confirms that prepaid expenses, accrued income, and prepaid expenses are dealt with in accordance with accepted accounting principles and practices. The major financial statements are the income statement and balance sheet. A company Income statement reports financial performance. It shows the amount of profit or loss a company has made. The balance sheet is a statement of assets, liabilities, and capital of a company. A balance sheet will help to show the financial position of the company. It is very important that we following the accounting cycle are important to ensure the accuracy of the financial statements. Additionally, financial statements are critical in helping management and investors make informed decisions. References
Accounting Cycle | Steps | Flow Chart | Example http://www.myaccountingcourse.com/accounting-cycle/ Nobles, T. L., Mattison, B. L., Matsumura, E.M. (2014). Horngren’sfinancial and managerial accounting(4thed.).Upper Saddle River, NJ: Pearson Education, Inc.
Holt, R. N., & Benke, R. L. (1992). The financial accounting cycle with supplements. Charlottesville, Virginia: Ivy
Reimers, Jane L. (2003). Financial Accounting A Business Process Application. Upper Saddle River, New Jersey, Prentice Hall.
[1] Noreen, Eric W., Brewer Peter C., et al., Managerial Accounting for Managers, Second Edition, McGraw-Hill/Irwin, New York, NY, 2011.
Hermanson, R., Edwards, J., & Maher, M. (2010).Accounting principles: A business perspective. (Vol. 2). Textbook Equity inc. DOI: www.textbookequity.com
Financial statement users around the globe use financial statements to evaluate the performance of companies (Fundamentals of Financial Accounting, 2006). In order to locate a company’s reported assets, liabilities, expenses and revenues, statement users rely on four types of financial statements. The four financial statements include: Balance Sheet, Income Statement, Statement of Retained Earnings, and Statement of Cash Flows (Fundamentals of Financial Accounting, 2006, p. 6). Each of these reports provides different information to the financial statement user. The Balance Sheet reports at a point in time: a company’s assets (what it owns), liabilities (what it owes) and stockholder’s equity (what is left over for the owners) (Fundamentals of Financial Accounting, 2006, p.7). The Income Statement shows whether a business made a profit (net income) during a specific period of time (Fundamentals of Financial Accounting, 2006, p. 10). The Statement of Retained Earnings illustrates what portions of the company’s earnings was paid to stockholders and retained by the company for future operations (Fundamentals of Financial Accounting, 2006, p.12). Finally, the Statement of Cash Flows reports summarizes how a business’ “operating, investing, and financial activities caused its cash balance to change over a particular range of time” (Fundamentals of Financial Accounting, 2006, p.13).
Midterm Exam Accounting 598 Part 2 2. What is the difference between a.. A critical component of any accounting theory course is an understanding of the conceptual framework. 2a. What is the difference between a'' and''?
Hermanson, R., Edwards, J., & Maher, M. (2010).Accounting principles: A business perspective. (Vol. 2). Textbook Equity inc. DOI: www.textbookequity.com
Dutta, Sunil, and Stefan Reichelstein. Accrual Accounting for Performance Evaluation. Research Paper Series 1886 (2005): 1-35. Print.
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial accounting (6th ed.). Hoboken, NJ: Wiley.
Gibson, C. H. (2011). Financial reporting & analysis: Using financial accounting information. (12th ed.). Mason, OH: South-Western Cengage Learning.
This paper will discuss these steps in detail. Because I work at home, I am not currently involved in any of the steps of the accounting cycle. The examples I give in this paper will be from various jobs I have held in the past.
Weygandt, Kimmel, and Kieso (2008). Financial Accounting: A Focus on Fundamentals. John Wiley and Sons Inc.
Chapter Summary. (n.d.). Financial and Managerial Accounting | . Retrieved May 28, 2014, from http://highered.mcgraw-hill.com/sites/0072396881/student_view0/chapter6/chapter_summary.html
: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. Retrieved on Feb 28, 2011 from: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial accounting (6th ed.). Hoboken, NJ: Wiley.
Romney, Marshal, and Paul Steinbart. Accounting Information Systmes. 10th ed. Upper Saddle River: Pearson Education, 2006. 193-195.
Marshall, M.H., McManus, W.W., Viele, V.F. (2003). Accounting: What the Numbers Mean. 6th ed. New York: McGraw-Hill Companies.