Adjusted trial balance:
the times spams during which cash is paid for goods and services which
are then sold to customer’s form whom the business collects cash.
Cash is used to acquire goods and services
These goods and services are sold to customers
The business collects cash from customers
Operating cycle of a merchandising business
a business that sells merchandise, or good, to customers.
the merchandise that a business sells to customer.
a type of merchandiser that buys a goods from manufacturers and then sells
them to retailers.
a type of merchandiser that buys merchandise wither form a manufacture or a
wholesaler and the sells those goods to consumers.
sell the inventory
collect cash from customers.
Long-term v current assets and liability.
an asset that will not be converted to cash or used up within the
business’s operating cycle or one year, whichever is greater. Made up of three categories: long-
term investment = bonds or stock, plant assets = property equipment and intangible assets =
assets that is expected to be converted to cash, sold, or used up during the
next 12 months or within the business’s normal operating cycle if the cycle is longer than a year.
Cash, notes receivables, accounts receivables, supplies, prepaid and inventory.
: that must be paid with cash with goods and services within one year or
within the longer entity’s operating cycle if the cycle is longer than one year. Salaries payable,
interest payable and unearned revenue area all current liabilities.
a liability that does not need to be paid within the entity’s operating
cycle, whichever is longer. Note payable such as a mortgage on a building.
Calculate current assets:
Calculate current liabilities:
Long term liability:
an account that relates to a particular accounting period and is closed
at the end of that period—the revenues expense income summary and owner, withdrawals