Kế toán, kiểm toán - Completion of the accounting cycle
To study changes in Return on Assets
Separate into two components
Profit Margin
Net income divided by Total revenues
Total Asset Turnover
Total revenues divided by Average total assets
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Completion of the Accounting CycleAccounting Cycle During PeriodCollect transaction data from business documentsAnalyze transactions and journalizePost to ledgersAccounting Cycle End of PeriodPrepare unadjusted trial balancePrepare worksheetPrepare financial statementsJournalize and post adjustmentsJournalize and post closing entriesPrepare post closing trial balanceWorksheetWorking paper that bridges the gap between the accounting records and the financial statementsDetermines the effect of end-of-period adjustmentsDetermines net incomeSets up information for closing entriesPreparing the WorksheetEnter the heading Enter account numbers, titles, and general ledger balances in Trial Balance columnsEnter adjustments in Adjustments columnsPreparing the WorksheetCalculate the Adjusted Trial Balance columnsExtend amounts from Adjusted Trial Balance columns to the Income Statement or Balance Sheet columnsPreparing the WorksheetSubtotal the four financial statement columnsDetermine the amount that will balance the Income Statement and Balance Sheet columnsEnter this amount below the subtotals to balance the columnsClosing EntriesRevenue, expense, and dividend accounts accumulate changes in owners’ equity during an accounting periodAt the end of the period, we must transfer these changes to Retained EarningsSteps in ClosingTransfer the revenue account balances to Income SummaryTransfer the expense account balances to Income SummaryTransfer the Income Summary balance to Retained EarningsTransfer the Dividends balance to Retained EarningsAnalyzing InformationTo study changes in Return on AssetsSeparate into two componentsProfit MarginNet income divided by Total revenuesTotal Asset TurnoverTotal revenues divided by Average total assetsAnalyzing InformationSeparation shows that a company can generate Return on Assets by eitherEarning a high profit margin by controlling expenses for a given revenueEarning higher revenues for a given investment in assets
Các file đính kèm theo tài liệu này:
- c04_4161.ppt