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.
Romney, Marshal, and Paul Steinbart. Accounting Information Systmes. 10th ed. Upper Saddle River: Pearson Education, 2006. 193-195.
As accrual accounting is used by businesses to get a picture of its financial condition and guide them in making financial
Marshall, M.H., McManus, W.W., Viele, V.F. (2003). Accounting: What the Numbers Mean. 6th ed. New York: McGraw-Hill Companies.
Final Paper BUS 630, Managerial Accounting Name Date Instructor Introduction “Managerial Accounting is the branch of accounting that meets managers' information needs. Because managerial accounting is designed to assist the firm's managers in making business decisions, relatively few restrictions are imposed by outside regulatory bodies and generally accepted accounting principles. Therefore, a manager must define which data are relevant for a particular purpose and which are not” (Schneider, 2012). Managerial accounting is an important part of an organization’s setup that guides the managers and helps them to make important financial decisions. It is an important functional area that is conducted in each and every organization
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.
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''?
Accounting dates back as far as first centuries, is the language of business. As everything has gone through many changes, accounting has also changed many times through out the centuries. It went from the use of abacus to the most advanced softwares, and computers. With these drastic improvements nowadays accounting, financial accounting and management are facing big challenges. From the presentation of the reports to communication to the users, investors, and owners, the accounting field has gained totally a new shape from two decades ago. Today with the dynamic change in every aspect of life, the accounting field has to act fast and be able to adapt these new changes and challenges in order to survive.
The accounting cycle is a series of steps starting with recording business transactions and leading up to the preparation of financial statements. This financial process demonstrates the purpose of financial accounting–to create useful financial information in the form of general-purpose financial statements. In other words, the sole purpose of recording transactions and keeping track of expenses and revenues is turn this data into meaning financial information by presenting it in the form of a balance sheet, income statement, statement of owner’s equity, and statement of cash flows.
Income statement-: Income statement is the financial statement that measures a company 's financial performance over a specific accounting period. Financial performance is assessed by giving a summary of how the business incurs its revenues and expenses through both operating and non-operating activities.
Balance sheet is a financial statement which is widely used by accountants for businesses. Balance sheet is also known as the statement of financial position because it helps us to present company’s financial position at the end of a specified period. (fresh books, 2016)
Owners and managers require financial statements to make important business decisions that affect its continued operations. Financial analysis is then performed on these statements to provide management with a more detailed understanding of the figures. These statements are also used as part of management's annual report to the stockholders.