About This Chapter
Below is a sample breakdown of the Adjusting Accounts and Preparing Financial Statements chapter into a 5-day school week. Based on the pace of your course, you may need to adapt the lesson plan to fit your needs.
|Day||Topics||Key Terms and Concepts Covered|
|Monday||Reporting and types of accounting||Periodic reporting, getting the most out of financial statements through accrual accounting, and cash-basis accounting vs. accrual accounting|
|Tuesday||Adjustments, expenses, and revenue||Accrued and deferred revenue, accrued and deferred expenses, account adjustments, interest revenue, interest payable, accounts receivable, and salaries payable|
|Wednesday||Statement preparation||Adjusted trial balance, accrual basis, adjusting entries, statement of retained earnings, dividend, balance sheet, expense, permanent accounts, revenue, and income statement|
|Thursday||Types of accounts||Permanent, real, temporary, and nominal|
|Friday||Closing process||Income summary account, steps of the closing process, trial balance, REID, uses for temporary accounts, and 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 Financial Accounting Syllabus Resource & Lesson Plans course
- Introduction to Accounting Lesson Plans
- Financial Statements in Accounting Lesson Plans
- Mechanics of the Accounting Cycle Lesson Plans
- Internal Controls in Accounting Lesson Plans
- Merchandising Operations and Inventory in Accounting Lesson Plans
- Receivables in Accounting Lesson Plans
- Current and Long-Term Liabilities in Accounting Lesson Plans