Paper 1 - For various businesses of different sizes,...

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For various businesses of different sizes, keeping a good accounting record is not only important, but in some cases, necessary. Publicly traded companies such as Walmart, Exxon Mobile and Microsoft are required by the FCC (Federal Communications Commission) to file financial reports to the public, because shareholders have the right to know how to company is doing. These reports normally come out every quarter (three months), depends on the company; it consists of Cash Flow Statement, Balance Sheet, Stockholder’s Equity and other financial statements. An accounting cycle is the cycle of creating, recording, calculating, reviewing and publishing of these financial statements. There are many measure of accounting cycle, but ultimately it’s bound by time, an accounting cycle will begin at the end of last accounting cycle, and end on the assigned date. Companies decide their own start and end of accounting cycle; they don’t always follow the calendar we use at home. The first step in the accounting cycle is the opening of accounting records. For example,
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This note was uploaded on 10/13/2011 for the course MGMT 200 taught by Professor Greigg during the Spring '08 term at Purdue University-West Lafayette.

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