mobởi Mo Mo Ngày Nộp: 10-thg 5-2021 03:07SA (UTC+0700) ID Bài Nộp: 1582000496 Tên Tập tin: accounting.docx (109.63K) Đếm từ: 3873 Đếm ký tự: 18971
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ADst ract The assignment is intended to use financial accounting methods to verify the financial parameters of AC&DC Ltd as an accounting assistant. The accounting methods are mainly used by preparing Journal, Ledger and Trial balance. The results are accurate financial statements of AC&DC Ltd. Company.
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Explain an accounting cycle Accounting cycle is the process of processing and recording all financial transactions of an organization. This cycle is closed into one cycle from transaction taking place, to generating financial statements, until closing the transaction. This cycle is repeated every fiscal year as long as the company is still active. And the main task of the financial accountant is to follow the full accounting cycle from start to finish. The accounting cycle usually has eight basic steps: 1.Transactions: The process begins with financial transactions. Financial transactionscanincludeanyassetpurchases,salesormaintenance expenses, anddebtpaymentsareallfinancialtransactionsthatwillinitiatethe process. 2.Journal Entries: After the transactions are established. It will be logged into the company’sjournalentrychronologically.Whenthereareeitherdebitsor credits, they should always be in balance with each other on the journalentry. Journal entry is a record of the company’s financial transactions. During a fiscal year cycle, the journal entry records financial activities chronologically. 3.PostingtotheGeneralLedger:Theentries arethenpostedtoageneral ledger, where summaries of all transactions for individual accounts can be seen. The ledger, also known as the end-of-period storage book. Ledger entries are changes made to each account in your ledger. Using your log, organize transactions into different accounts. For example, if the customer pays for the productwithcash, enterthetransactionwiththecashaccountin yourbooks. 4.Trial Balance: At each end of the accounting cycle (known as a fiscal year), the total balances are charged to the accounts. These debit or credit accounts must be equal to produce accurate results. Can use an unadjusted trial balance to check.Ifthetotalbalanceofalldebitsandcreditsisnotequaltoeachother, then you have made an error and need to adjust the aboveitems. 5.Adjusting Entries: At the end of the accounting period, there may be unpaid expensesincurred.Or,maybeyouhavemoreincomebuthaven’treally earned it yet. At that time, use the adjusting entries to record financial transactions that have taken place but have not yet beenrecorded. 6.AdjustingTrialBalance:Aftercompletionofadjustingentries,thenextstep needs to be done is to check debited and credited fit together or not. This step is called the adjusting trialbalance. 7.FinancialStatement:Aftercompletingtheabovesteps,thenextstepisto create your statement. Some of the popular financial reportsare: -Incomestatement -Accounting balancesheet -Statements of cashflows These financial statements are prepared using the correct balances. 8.Closing: After the end of an accounting period, the revenue and expense accountswillbeclosed.Becauseaccountsforrevenueandexpenses are
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