The Accounting Cycle : A Primer for Nonfinancial Managers

Introduction Part 1: Overview of the Accounting Cycle The Accounting Cycle 3(1) Steps in the Accounting Cycle 4(4) Temporary and Permanent Accounts 8(7) Part 2: Cash or Accrual Accounting Cash or Accrual Accounting? 15(6) Part 3: Basic Recordkeeping Systems Setting Up the Books 21(1) The Chart of Accounts 22(1) Key Word Recognition 23(2) Single-Entry Recordkeeping 25(1) Double-Entry Accounting 26(4) A Few Recordkeeping Techniques 30(3) Part 4: Ledger and Journal The Ledger 33(8) The Trial Balance 41(2) The Journal 43(6) Part 5: Adjusting Entries General Rules for Adjusting Entries 49(1) Adjusting Entries 50(2) Adjusting Current Assets 52(4) Adjusting Current Liabilities 56(1) Adjusting Accrued Expense 57(1) Adjusting Accrued Revenue 58(5) Part 6: Closing Entries Closing Entries-An Overview 63(2) Temporary and Permanent Accounts 65(1) The Four Basic Entries to Closing Accounts 66(4) The Post-Closing Trial Balance 70(7) Part 7: The Balance Sheet and Income Statement Preparation of the Financial Statements 77(1) The Balance Sheet and Income Statement 78(2) The Balance Sheet 80(2) The Income Statement 82(1) Sample Income Statement and Balance Sheet 83(8) Part 8: Special Consideration: Inventory The Basic Difference of a Merchandise Company 91(1) Decisions About Inventory 92(3) Comparison of Inventory Flow Methods 95(4) Part 9: Business Decisions Introduction 99(4) Appendix Solutions to the Self-Tests 103