Ch 2 Notes - 3. Prepare A Trial Balance 4. Prepare And Post...

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Chapter 2 Notes 24/01/2007 11:05:00 Revenue – Expenses = Net Income - Revenue When does a company recognize revenues? - Expenses When does a company recognize expenses? *Recognize When does it go on the accounting equation? - Accrual Basis: Revenue When it is occurred or incurred. o Accounts Receivable Expenses When it occurs or incurs. o Accounts Payable - Accounts Payable Know that it is a bill that is due very shortly/soon. o These things have their own payable (Always Separate): Salaries Payable Interest Payable Taxes Payable o All the rest are Accounts Payable. Accounting Cycle 1. Record Transactions (Journal Entries) 2. Post To Ledgers
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Unformatted text preview: 3. Prepare A Trial Balance 4. Prepare And Post Adjusting Entries 5. Prepare An Adjusted Trail Balance 6. Prepare Financial Statements 7. Prepare Closing Entries 8. Prepare An After Closing Total/Balance 1-5 Are the Accounting Equation Financial Audits - Is a detailed examination of a companys financial statements and the documents that support those statements. - Only done by CPAs - Unqualified Opinion___________(Qualified)___________Adverse Opinion (Best) (Worse) - Adverse opinions are very rare. 24/01/2007 11:05:00 24/01/2007 11:05:00...
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This note was uploaded on 10/03/2011 for the course BUS 222 taught by Professor Jennings during the Spring '07 term at University of Maine Orono .

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Ch 2 Notes - 3. Prepare A Trial Balance 4. Prepare And Post...

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