F4 Outline

.docx
School
University of Maryland, Baltimore County **We aren't endorsed by this school
Course
ECON 121
Subject
Accounting
Date
Oct 26, 2023
Pages
7
Uploaded by jenniferkelly490912 on coursehero.com
F:4 Completing the Accounting Cycle F:4.1 How Do We Prepare Financial Statements? F:4.1 How Do We Prepare Financial Statements? We take the figures off of the adjusted trial balance and post them to the financial statements
F:4.1.2 Classified Balance Sheet Classified Balance Sheet - list assets in order of liquidity and liabilities in the order that they have to be paid Liquidity - how quickly and easily an account can be converted to cash Assets: o Current assets - expect to convert to cash within the next 12 months Cash, Accounts Receivable, Inventory, Prepaid Expenses o Long-term assets - expect to convert to cash or sell in more than a year Property, plant, and equipment, intangible assets Intangible assets - assets that you cannot physically touch (patents, copyrights, trademarks) Liabilities: o Current liabilities - expect to pay within the next 12 months o Long-term liabilities - do not need to be paid within a year **Practice**
F:4.3 What Is the Closing Process, and How Do We Close the Accounts? F:4.3.1 What Is the Closing Process, and How Do We Close the Accounts? Closing process/entries - zeroing out all revenues and expenses to net income(income summary) and zeroing out net income(income summary) and dividends to retained earnings o Step 1: Close revenue accounts to Income Summary o Step 2: Close expense accounts to Income Summary
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