"The accounting cycle is the name given to the collective process of recording and processing the accounting events of a company. The series of steps begin when a transaction occurs and end with its inclusion in the financial statements.Financial statements (or financial report) is a formal record of the financial activities and position of a business, person, or other entity. It mainly consist of Trading account, Profit & Loss account and the balance sheet.
It is standard practice for businesses to present financial statements that adhere to generally accepted accounting principles (GAAP) to maintain continuity of information and presentation across international borders.So it is very important for companies to prepare financial statement which gives true and fair view of the business.
So, In this course we will be taking you through different Steps to prepare financial statement of a sole proprietary concern. When recording manually,this is the general procedure that is followed. It is important to understand this base even when we follow a non traditional way of book keeping.In this course we will be taking you through different topics under the accounting cycle.
When recording manually,this is the general procedure that is followed. It is important to understand this base even when we follow a non traditional way of book keeping.
The following topics will be covered:
Then the 3rd stage which is finalizing stage:
-Rectification of errors
-Adjustments in accounting
Then the 4th and final stage which is analyzing stage:
-Reading and analysis of Financial Statements
-Comparing & Analyzing two Financial Statements
-Finding missing information by comparing Financial Statements
-Deriving Missing financial Statement from available information
-Deriving Cash/Bank Summary from 2 years statement
There are also some Accounting Test Time videos arranged for your practice/revision wherever needed.
We have focused more on understanding of concepts and tried to explain it in a simple and easy to learn format for all. We believe anyone can learn accounting!