Accounting Cycle Paper - 690 Words

Accounting Cycle Paper Acc 421 Date Accounting Cycle Paper Accounting is a financial information system designed to record, classify, report, and interpret financial data. The accrual concepts states that accounting income is measured by matching the expenses incurred in a given accounting period with the revenues earned in that period. The accounting cycle is 6 steps. The accounting cycle is a logical series of steps that accountants follow to keep necessary accounting records and prepare financial statements. The first two steps are very closely related and are accomplished during the month as transactions occur. Step 1 involves sorting business transactions into an appropriate number of debits and credits to†¦show more content†¦Income statement: has revenue, expense, gain and losses. The income statement represents the best effort of the firm’s accountants to match the relevant items of revenue with the relevant items of cost and expense for the period, a process which involves accrual accounting and extensive use of allocation of prior and future revenues and costs. Cash flow statements provide the most dynamic view of the expected changes in the company’s funding picture. Balance sheet: prepared from the assets, liabilities, and equity accounts. The balance sheet prepared as of a specific date, records the categories and amounts of assets employed by the business and the offsetting liabilities incurred to lenders and owners. Also called the statement of financial condition or statement of financial position, it must always balance. Statement of retained earnings: prepared from net income and dividend information (Helfert, 2001). Cash flow statement: derived from the income statement, balance sheet and stockholder equity statements. Personnel who are involved in the accounting cycle: Account Clerk, Accountant, Accounting Analyst, Accounting Specialist, cost accountant, financial manager, financial general manager, financial VP, budget and planning manager the internal auditor and the external auditor. Usually each of these persons assists in the preparation of new accountingShow MoreRelatedAccounting Cycle Paper924 Words   |  4 Pages| Accounting Cycle Paper | Accounting Cycle of Walmart | | Melanie Bartholomew | September 2, 2012 | When a company, like Walmart, begins to prepare financial statements and reports at the end of an accounting cycle they generally use Generally Accepted Accounting Principles and â€Å"the collective process of recording and processing the accounting events† (Definition of ‘Accounting Cycle’, 2012), known as the accounting cycle. There are nine steps involved in the accounting cycle. WalmartRead MoreRiordan Manufacturing – Accounting Cycle Description Essay1332 Words   |  6 PagesRiordan Manufacturing – Accounting Cycle Description Introduction Riordan Manufacturing, Inc. is an industry leader in the field of plastic injection molding. Using cutting edge art design capabilities, this Fortune 1000 Enterprise Company maintains facilities in San Jose, California, Albany, Georgia, Pontiac, Michigan and Hangzhou, China, and has annual earnings of $46 million. A company does not attain and maintain this type of success by accident. Part of Riordan’s success is due to itsRead MoreManual vs Computerized Accounting1225 Words   |  5 PagesManual versus Computerized Accounting Ever since Lucas Pacioli wrote about and spread the knowledge of double entry accounting in his â€Å"Summa di Arithemetica† in 1494, modern manual accounting was born (Hendrickson, 2007), though manual accounting has existed in many forms since ancient times. In contrast, computerized accounting systems are a more modern invention, as the first computer was invented between 1943 and 1946 (â€Å"Great Events in Accounting amp; Business History†, (n.d.)) and ArthurRead MoreThe Accounting Cycle1035 Words   |  5 PagesThe Accounting Cycle Presented to Ms. Aisha Meeks Department of Business Management College of Business Administration Alabama State University In Partial Fulfillment of the Requirements for the Course ACT.214.04 By Krystal Hall January 26, 2013 Memo: To: Ms. Aisha Meeks From: Krystal Hall Date: 2/26/2013 Re: The Accounting Cycle Every company has an accounting cycle. An Accounting cycle is the process that begins with analyzing and journalizing transactions and it ends withRead MoreThe Steps to the Accounting Cycle1007 Words   |  5 PagesThe accounting cycle refers to the process by which companies produce their financial statements for a specific period of time. It is called a cycle because the steps are repeated each reporting period. The organization at which I am employed completes its accounting cycle monthly. The organization is a privately owned nursing facility licensed and incorporated in the state of Virginia that has been in business since 1966. An explanation of the overall accounting cycle at the organization includingRead MoreComputerized vs. Manual Accounting1630 Words   |  7 PagesPrepared For : Mr. Nelson Title: | Computerized Accounting should completely replaces Manual AccountingPrepared By : Ali H. Al-MuslimID#: 200628620Section# : 05SN#: 02Group#:01Word Count:1,333 | 10/7/2012 10/7/2012 Table of Contents Table of Contents II Introduction 3 I. Manual Accounting 4 A. Benefits 4 1. Cost effective 4 2. Availability 4 B. Limitations 4 1. Finding Errors 4 2. Time Factor 5 II. Computerized Accounting 5 A. Benefits 5 1. Speed 5 2. SavingRead MoreWhat I Learned At Ais 2016. Before Starting The Accounting Information System Class Essay1471 Words   |  6 PagesWhat I Learned in AIS 2016 Before starting the Accounting Information Systems class, I had little idea of what accounting information was. After having Professor Carothers for previous accounting classes, I knew it would be a tough class but the knowledge I would gain would be well worth it and everlasting. Throughout this semester, I have learned a great deal of information, because of this it is hard to talk about everything. I decided instead of talking about everything I learned I would chooseRead MoreThe Full Accounting Cycle And Present A Quick Synopsis Of All Of The Steps1049 Words   |  5 Pagesthis paper is to discuss the full accounting cycle and present a quick synopsis of all of the steps along with a brief description on how it can impact a business’s success. The role of each step and why each step is critical in this process will also be explained. The omission of a step, no matter how small, could negatively impact the financial security of a business. The four basic financial stateme nts and why they are important will be the final segment in discussing the full accounting cycleRead MoreEssay A General Overview of Peachtree Complete Accounting730 Words   |  3 Pagesoverview of Peachtree Complete Accounting. Make sure the overview provides the reader with a general understanding of the application, including the projected purchase price and any special hardware and/or software requirements. Section II: Transactional Processing and Data Management (minimum 6 pages) Describe how Peachtree Complete Accounting handles processing the accounting transactions and recording business activities for the revenue, expenditure and financing cycles. You should provide at leastRead MoreAccounting Is The Process Of Identifying, Recording And Communicating Information807 Words   |  4 PagesAccounting is the process of identifying, recording and communicating information to interested users. Financial Statements, such as the balance sheets, income statements, etc. must follow GAAP or United Stated GAAP. GAAP or Generally Accepted Accounting Principles is a set of principles that gives accountants guidance when performing the accounting cycle. The accounting cycle is a lengthy process. The eight steps in the accounting cycle are as follows: identify the transactions, journalize the transactions