4. Accounting Cycle

4. Accounting Cycle - CHAPTER4 COMPLETINGTHEACCOUNTINGCYCLE

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CHAPTER 4 COMPLETING THE ACCOUNTING CYCLE Flow of Accounting Information Using an end-of period spreadsheet (worksheet), describes how the unadjusted trial balance  accounts are affected by adjustments and how the adjusted trial balance accounts flow into the  income statement and balance sheet.  Financial Statements 1. Income Statement - A summary of the revenue and expenses for a specific period of  time, such as a month or a year.  Income Statement = Revenue – Expense. 2. Retained Earnings Statement - A summary of the changes in the retained earnings in a  corporation for a specific period of time, such as a month or a year. Net Income – Dividends = Retained Earnings.  Net loss income + Dividends = Retained Earnings 3. Balance Sheet - A list of assets, liabilities, and owner’s equity as of a specific date,  usually at the close of the last day of the month or year.
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This note was uploaded on 03/31/2010 for the course ACCOUNTING ACG4101 taught by Professor Abhijitbarua during the Spring '09 term at FIU.

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4. Accounting Cycle - CHAPTER4 COMPLETINGTHEACCOUNTINGCYCLE

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