Business Accounting - Recording Transactions and Financial Statements
What are some key tasks involved in business accounting, specifically related to recording transactions, making adjusting entries, and preparing financial statements?
Recording Transactions:
Preparing Financial Statements:
Adjusted Trial Balance: This is a statement prepared after adjusting entries to ensure that debits and credits are still equal while reflecting the adjustments made.
Income Statement: Reflects the company's revenues, expenses, and net income over a specific period.
Statement of Retained Earnings: Illustrates changes in the retained earnings balance over a certain period due to net income, dividends, and other adjustments.
Balance Sheet: Provides a snapshot of the company's financial position at a specific point in time, showcasing assets, liabilities, and equity.
Closing Entries: Reset the temporary revenue, expense, and dividend accounts to zero to start the next accounting period fresh.
Post-Closing Trial Balance: Ensures that all temporary accounts have been correctly closed to prepare for the next period.