Acct. Jan 9
Published on Dec 19, 2015
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MORE DECKS TO EXPLORE
PRESENTATION OUTLINE
completing the accounting cycle
Mr. Melkonian
WHen preparing financial statements
- all accounts are brought up to date
- all late transactions are taken into account
- all calculations have been made correctly
- all GAAPs have been complied with
'making adjustments'
bringing the account data up to date
when you purchase a supply - cost debited to supply account
but as we use the supplies, no accounting entries are made to record it
Photo by Sergiu Bacioiu
during accounting period, balance of supplies
represents the balance of the beginning of period plus any new supplies
Photo by shimelle
expense accont
will be zero... neither seems right
prepaid expense
item paid for in advance - benefits extend into future
Photo by Southernpixel - Alby Headrick
insurance is most common prepaid expense
insurance is usually one year coverage
if a certain percent is paid
deduct from expense
late-arriving purchas invoices
Photo by William Hook
