About This Chapter
Adjusting Accounts and Preparing Financial Statements - Chapter Summary and Learning Objectives
Putting together a financial statement is a process. It isn't as easy as just accumulating the information and writing it down. There are rules. There are different types of accounts. There are correct and wrong ways to record information. Preparing financial statements can be looked at as a sort of art because everything needs to be done correctly in order for proper records to be maintained. In this chapter, you will watch video lessons that teach you about a variety of subjects related to preparing financial statements. Some of the things you will learn about include:
- Prepaid expenses
- Unearned revenues
- Adjusting entries
- Temporary accounts
- Closing entries
- Nominal accounts
|Periodic Reporting & the Time Period Principle||Explore the importance of periodic reporting and the time period principle.|
|Using Accrual Accounting to Make Financial Statements More Useful||Study how financial statements can be made more useful through accrual accounting.|
|The Differences Between Accrual & Cash-Basis Accounting||Compare accrual accounting and cash-basis accounting.|
|Account Adjustments: Types, Purpose & Their Link to Financial Statements||Learn about the types of adjustments, their purpose, and how accounting adjustments link to financial statements.|
|Accrued Expenses & Revenues: Definition & Examples||Examine accrued expenses and accrued revenues.|
|Adjusted Trial Balance: Definition, Preparation & Example||Study adjusted trail balance and explain how to prepare an adjusted trial balance.|
|Preparing Financial Statements||Analyze how to prepare financial statements from an adjusted trial balance.|
|Temporary & Permanent Accounts: Definition & Differences||Discover temporary and permanent accounts.|
|Closing Entries: Process, Major Steps, Purpose & Objectives||Explore the purpose and objectives of the closing process.|
|Real Accounts vs. Nominal Accounts: Definition, Differences & Examples||Take a look at the differences in real and nominal accounts.|
|Post-Closing Trial Balance: Preparation & Purpose||Find out about preparing the post-closing trial balance.|
1. Periodic Reporting & the Time Period Principle
Time plays a very important role in accounting and financial reporting. In this lesson, you will learn why time is important as we discuss periodic reporting and the time period principle.
2. Using Accrual Accounting to Make Financial Statements More Useful
What is the relationship between the financial statements and accrual accounting? Do you know? By the time this lesson is over, you will not only know what the relationship is between the two but also why that relationship is important.
3. The Differences Between Accrual & Cash-Basis Accounting
There are two accounting methods that companies can choose from when deciding how they want their books done. They are cash basis and accrual basis. In this lesson, you will learn the differences between the two.
4. Account Adjustments: Types, Purpose & Their Link to Financial Statements
Accounting is a multi-step process. In this lesson, we will discuss adjusting entries. You will learn what they are, why they are important, and see examples.
5. Accrued Expenses & Revenues: Definition & Examples
Accruals are a part of the accounting world for most businesses. In this lesson, you will learn about two important parts of the concept of accruals: accrued revenue and accrued expenses.
6. Adjusted Trial Balance: Definition, Preparation & Example
There are many steps in the accounting cycle that must be taken before a company's financial statements are prepared. In this lesson, we will be discussing one of those steps - creating an adjusted trial balance.
7. Preparing Financial Statements
Financial statements are the most sought after reports in the financial industry. In this lesson, you will learn how to prepare them using information found on the adjusted trial balance.
8. Temporary & Permanent Accounts: Definition & Differences
Accounts are classified in a variety of ways in accounting. In this lesson, you will learn about two types of account classifications: temporary and permanent accounts.
9. Closing Entries: Process, Major Steps, Purpose & Objectives
The accounting cycle is a multi-step process. In this lesson, you will learn about part of that process: making closing entries. You will learn what closing entries are, what accounts are affected, and how they are made.
10. Real Accounts vs. Nominal Accounts: Definition, Differences & Examples
In accounting, there is a classification for everything. Transactions, financial statements, and accounts are broken down into classifications. In this lesson, we will be discussing two classifications of accounts - real accounts and nominal accounts.
11. Post-Closing Trial Balance: Preparation & Purpose
The last step in the accounting process is to create the post-closing trial balance. In this lesson, you will learn what the post-closing trial balance is, why it's important, and what accounts appear on it.
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Other chapters within the Accounting 101: Financial Accounting course
- Introduction to Accounting
- Financial Statements in Accounting
- Mechanics of the Accounting Cycle
- Internal Controls in Accounting
- Merchandising Operations and Inventory in Accounting
- Receivables in Accounting
- Completing the Operating Cycle in Accounting
- Long-Term Assets in Accounting
- Current and Long-Term Liabilities in Accounting
- Reporting & Analyzing Equity in Accounting
- Statement of Cash Flows in Accounting
- Financial Statement Analysis in Accounting
- Studying for Accounting 101