Accounting Cycle The accounting cycle comprises of the cycle of accounting process. It begins with analysis of the transactions and ends with carrying forward the balances in balance sheet to the next accounting period. It produces numerous records‚ entries‚ documents‚ reports and statements. The most important output of accounting cycle is an enterprise’s financial statements. The following are the steps that summarises an accounting cycle. The accountant performs the steps in one accounting cycle
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More Practice for the Final Exam Adjusting Entries Key _____ 1. Accruals occur when cash flows: A) Occur before expense recognition. B) Occur after revenue or expense recognition. C) Are uncertain. D) May be substituted for goods or services. Answer: B _____ 2. An example of a contra account is: A) Depreciation expense. B) Accounts receivable. C)
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Journalizing – Books of Original Entry Journals ▪ General Journals ▪ Cash Receipt Journals ▪ Sales Journals ▪ Cash Disbursements Journal ▪ Purchase Journal b. Posting – Books of Final Entry General
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lesson below is the main rule accountants and accountant wanna-be’s follow when entering entries in the journal and the ledger. This rule may not change for it has already been set and followed by a lot of people. A journal entry is not complete if only one side has an entry‚ there is supposed to be entries in both sides. The general rule of debit and credit: For every entry in the debit side‚ there is a matching entry in the credit side. This rule is close to karma that for every good/bad deed you have
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account and handing it over to the custodian of the fund. The journal entry is to debit petty cash and credit cash at bank. 2. Disbursements: Individual disbursements from petty cash are not recorded via a journal entry. Instead journal entry is passed at the time of each replenishment and at the end of the period for the total amount disbursed. 3. Replenishment: When the balance in petty cash becomes low‚ a journal entry is passed debiting various expense accounts and crediting petty cash
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Health Care Case Study: Financial Statements University of Phoenix Health Care Financial Accounting HCS/405 December 06‚ 2010 Health Care Case Study: Financial Statements This paper is a health care case study of financial statements for Patton-Fuller Community Hospital. This summary is a review of the annual report and financial statements and the differences between the audited and the unaudited statements. The financial ratios are examined to determine if there has been improvement from
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1. Identify any internal control weaknesses for the five areas mentioned by the Finance Committee. Discuss any weakness and explain how to improve each situation. * Inadequate system to track the revenue generation and grant * There is no system to track the revenue generation * Inadequate system to monitor the expenses * All the expenses should go through an approval process which requires all the expenses should be properly documented and the need explained. This is
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Salaries Payable.|D.|Owner‚ Withdrawals.|E.|Sales Salaries Expense.|| 7.|A balance column ledger account is: A.|An account entered on the balance sheet.|B.|An account with debit and credit columns for posting entries and another column for showing the balance of the account after each entry is posted.|C.|Another name for the withdrawals account.|D.|An account used to record the transfers of assets from a business to its owner.|E.|A simple form of account that is widely used in accounting to illustrate
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the numbered partial statement. Record the letter next to the number. 1. __D___ The right side of an account a. is the correct side. b. reflects all transactions for the accounting period. c. shows all the balances of the accounts in the system. d. is the credit side. 2. ___A__ An account will have a credit balance if the a. credits exceed the debits. b. first transaction entered was a credit. c. debits exceed the credits. d. last transaction entered was a credit. 3. __A___ Which of the
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NOTES FROM FIRST ASSIGNMENT 1. Start Journal Entry with Debit (s) on the first line (s) and credit (s) on the next lines‚ e.g.‚ Cash xxx Owner’s Capital xxx 2. No need to write ‘Debit’ and ‘Credit’ when doing a journal entry. Simply indent the credits (including the Account Titles) further to the right and that will signify credits and debits to accountants. 3. Use Account Descriptions that are given in the Problem (e.g.‚ if the problem only has ’Expenses’
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