The Accounting Cycle: A Practical Guide to Accounting Basics

'Written for the beginner, this concise guide maps out the accounting cycle: balance sheets, income statements, ledger transactions, trial balances, and closing entries.'

Introduction Part 1: Overview of the Accounting Cycle The Accounting Cycle Steps in the Accounting Cycle Temporary and Permanent Accounts Part 2: Cash or Accrual Accounting? Cash or Accrual Accounting? Part 3: Basic Recordkeeping Systems Setting Up the Books The Chart of Accounts Key Word Recognition Single-Entry Recordkeeping Double-Entry Recordkeeping A Few Recordkeeping Techniques Part 4: Ledger and Journal The Ledger The Trial Balance The Journal Part 5: Adjusting Entries General Rules for Adjusting Entries Adjusting Entries Adjusting Current Assets Adjusting Current Liabilities Adjusting Accrued Expense Adjusting Accrued Revenue Part 6: Closing Entries Closing Entries--An Overview Temporary and Permanent Accounts The Four Basic Entries to Closing Accounts The Post-Closing Trial Balance Part 7: The Balance Sheet and Income Statement Preparation of the Financial Statements The Balance Sheet and Income Statements The Balance Sheet The Income Statement Sample Income Statement and Balance Sheet Part 8: Special Consideration: Inventory The Basic Difference of a Merchandise Company Decisions About Inventory Comparison of Inventory Flow Methods Part 9: Business Decisions Introduction Appendix Solutions to the Self-Tests