The accounting cycle pdf book free download

The accounting cycle pdf book free download

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The accounting cycle pdf book free download


The Accounting Cycle
© 2009 Larry M. Walther, under nonexclusive license to Christopher J. Skousen &
Ventus Publishing ApS. All material in this publication is copyrighted, and the exclusive
property of Larry M. Walther or his licensors (all rights reserved).
ISBN 978-87-7681-486-1


Part 1: Welcome to the World of Accounting

1. Accounting Information

1.1 Accounting Def ned
1.2 Financial Accounting
1.3 Managerial Accounting
1.4 A Quality Information System
1.5 Inherent Limitations
2. The Accounting Profession and Careers
2.1 Accounting and Professional Ethics
3. The Fundamental Accounting Equation
3.1 Assets
3.2 Liabilities
3.3 Owners’ Equity
3.4 Balance Sheet
4. How Transactions Impact the Accounting Equation
4.1 Edelweiss Collects an Account Receivable
4.2 Edelweiss Buys Equipment With Loan Proceeds
4.3 Edelweiss Provides Services to a Costumer on Account
4.4 Edelweiss Pays Expenses With Cash
4.5 Generalizing About the Impact of Transactions
4.6 Distinguishing Between Revenue and Income

5. The Core Financial Statements
5.1 Financial Statements
5.2 Income Statements
5.3 The Statement of Retained Earnings
5.4 Balance Sheet
5.5 Statement of Cash Flows
5.6 Articulation
5.7 Unlocking the Mystery of Articulation

Part 2: Information Processing

6. Accounts, Debits and Credits
6.1 Accounts
6.2 Debits and Credits
6.3 The Fallacy of “+/-” Nomenclature
6.4 The Debit/Credit Rules
6.5 Assets/Expenses/Dividends
6.6 Liabilities/Revenues/Equity
6.7 Analysis of Transactions and Events

6.8 Determining an Account’s Balance
6.9 A Common Misunderstanding About Credits
7. The Journal
7.1 Illustrating the Accounting Journal
7.2 Special Journals
7.3 Page Numbering
7.4 But, What are the Account Balances?

8. The General Ledger
8.1 Posting
8.2 To Review
9. The Trial Balance
9.1 Debits Equal Credits
9.2 Financial Statements From the Trial Balance
10. Computerized Processing Systems
10.1 What do they Look Like
11. T-accounts
11.1 Comprehensive T-accounting Illustration
11.2 Chart of Accounts
11.3 Control and Subsidiary Accounts

Part 3: Income Measurement

12. “Measurement Triggering” Transactions and Events
12.1 The Meaning of “Accounting” Income
12.2 More Income Terminology
12.3 An Emphesis on Transactions and Events
13. The Periodicity Assumption
13.1 Accounting Implications

14. Basic Elements of Revenue Recognition
14.1 Payment and Revenue Recognition
15. Basic Elements of Expense Recognition
15.1 Payment and Expense Recognition
16. The Adjusting Process and Related Entries
16.1 Illustration of Prepaid Insurance
16.2 Illustration of Prepaid Rent
16.3 I’m a Bit Confused – Exactly When do I Adjust?
16.4 Illustration of Supplies
16.5 Depreciation
16.6 Unearned Revenues
16.7 Accruals
16.8 Accrued Salaries
16.9 Accrued Interest
16.10 Accrued Rent
16.11 Accrued Revenue
16.12 Recap of Adjustments
16.13 The Adjusted Trial Balance
16.14 Alternative Procedures for Certain Adjustments
17. Accrual- Versus Cash-Basis Accounting
17.1 Modifi ed Approaches
17.2 Illustration of Cash-Versus Accrual Basis Accounting

Part 4: The Reporting Cycle

18. Preparing Financial Statements
18.1 An Illustration
18.2 Considering the Actual Process for Adjustments
18.3 Financial Statements
18.4 Computerization
18.5 A Worksheet Approach
18.6 An Additional Illustration
19. The Accounting Cycle and Closing Process
19.1 The Closing Process
19.2 Post Closing Trial Balance
19.3 Revisiting Computerization
20. Reversing Entries
21. Classifi ed Balance Sheets
21.1 Assets
21.2 Liabilities
21.3 Equity
21.4 Other Entity Forms
21.5 Notes to the Financial Statements
22. Business Liquidity and the Operating Cycle
22.1 Working Capital
22.2 Current Ratio
22.3 Quick Ratio


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