The Accounting Cycle

SkousenThe Accounting Cycle Download free books at... Download free eBooks at bookboon.com2 The Accounting Cycle © 2009 Larry M.. Accounting Information 1.1 Accounting Def ned 1.2 Finan

Larry M Walther; Christopher J Skousen

The Accounting Cycle

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The Accounting Cycle

© 2009 Larry M Walther, under nonexclusive license to Christopher J Skousen & Ventus Publishing ApS All material in this publication is copyrighted, and the exclusive property of Larry M Walther or his licensors (all rights reserved)

ISBN 978-87-7681-486-1

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The Accounting Cycle

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Contents

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Contents

Part 1: Welcome to the World of Accounting

1 Accounting Information

1.1 Accounting Def ned

1.2 Financial Accounting

1.3 Managerial Accounting

1.4 A Quality Information System

1.5 Inherent Limitations

2 The Accounting Profession and Careers

2.1 Accounting and Professional Ethics

3 The Fundamental Accounting Equation

3.1 Assets

3.2 Liabilities

3.3 Owners’ Equity

3.4 Balance Sheet

4 How Transactions Impact the Accounting Equation

4.1 Edelweiss Collects an Account Receivable

4.2 Edelweiss Buys Equipment With Loan Proceeds

4.3 Edelweiss Provides Services to a Costumer on Account

4.4 Edelweiss Pays Expenses With Cash

4.5 Generalizing About the Impact of Transactions

4.6 Distinguishing Between Revenue and Income

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The Accounting Cycle

4

Contents

5 The Core Financial Statements

5.1 Financial Statements

5.2 Income Statements

5.3 The Statement of Retained Earnings

5.4 Balance Sheet

5.5 Statement of Cash Flows

5.6 Articulation

5.7 Unlocking the Mystery of Articulation

Part 2: Information Processing

6 Accounts, Debits and Credits

6.1 Accounts

6.2 Debits and Credits

6.3 The Fallacy of “+/-” Nomenclature

6.4 The Debit/Credit Rules

6.5 Assets/Expenses/Dividends

6.6 Liabilities/Revenues/Equity

6.7 Analysis of Transactions and Events

6.8 Determining an Account’s Balance

6.9 A Common Misunderstanding About Credits

7 The Journal

7.1 Illustrating the Accounting Journal

7.2 Special Journals

7.3 Page Numbering

7.4 But, What are the Account Balances?

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360°

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