Post-Closing TrialBalance preparedAdjusting and closingentries postedAdjusting and closingentries journalizedAccounting CycleBusiness transactionsgenerate sourcedocumentFinancial statementscreated fromworksheetSource documentsanalyzed and enteredinto a journalPosting of journaldata into the ledgerWorksheet preparedfrom ledgerinformation What do you do?Students will identify where in the accounting cycle each of the following nine concepts can be found or occurs.Business Entity: the finances of the business should be kept separate and apart from the personal finances of thebusiness owner.Going Concern: financial statements are prepared under the assumption the business intends to "stay in business" forthe foreseeable future.Full Disclosure: financial statements are complete and contain all relevant information.Objective Evidence: the business activity captured in financial records is backed up by proof in the form of verifiablesource documents.Matching Principle: revenue from business operations and the expenses incurred to generate that revenue are recordedin the same accounting period.Historical Cost: the financial records report the actual amount paid by the business.Revenue Recognition: revenue is recorded when it is earned, at the time of sale.Consistent Reporting: the same methods are used to prepare financial reports in each accounting period.Accounting Period: the process of financial activities that are completed to produce financial records occur in a specificand distinct time period.Students should provide at least one specific example for where the concept is found AND provide a rationale for whythat specific concept is important for accountants to follow. Recall the example provided in the lesson.

Accounting Cycle The unadjusted trial balance, the worksheet, identifying transactions, entering…

What do you do? Students will identify where in the accounting cycle each of the following nine concepts can be found or occurs. Business Entity: the finances of the business should be kept separate and apart from the personal finances of the business owner. Going Concern: financial statements are prepared under the assumption the business intends to "stay in business" for the foreseeable future. Full Disclosure: financial statements are complete and contain all relevant information.

What do you do? Students will identify where in the accounting cycle each of the following nine concepts can be found or occurs. Business Entity: the finances of the business should be kept separate and apart from the personal finances of the business owner. Going Concern: financial statements are prepared under the assumption the business intends to "stay in business" for the foreseeable future. Full Disclosure: financial statements are complete and contain all relevant information.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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