酷兔英语

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Text 4 Completing the Accounting Cycle

Prepare an accounting worksheet, The accounting cycle is the process by which the accountants produce the financial statements for a special period of time. The cycle starts with the beginning account balances. During the period,the business journalizes transactions & posts them to the ledger accounts. At the end of the period, the trail balance is prepared, and the accounts are adjusted in order to measure the period's net income or net loss. Completion of the accounting cycle is aided by use of a work sheet. This multicolumned document summarizes the effects of all the activity of the period.

Use the work sheet to complete the accounting cycle. The work sheet is neither a journal nor a ledger but merely a convenient device for completing the accounting cycle. It has columns for the trail balance, the adjustments, the adjusted trail balance, the income statement, and the balance sheet. It aids the adjusting process, and it is the place where the period's net income or net loss is first computed. The work sheet also provides a data for the financial statements & the closing entries. It is not, however, necessity. The accounting cycle can be completed from the less elaborate adjusted trail balance.

Close the revenue, expense, and the withdrawal accounts. Revenue, expenses, and withdrawal represent, increases and decreases in owner's equity for a specific period. At the end of the period, their balances are closed out to zero, and, for this reason, they are called temporary accounts. Assets, liabilities, and capital are not closed because they are the permanent account. Their balances at the end of one period become the beginning balances of the next period. The final accuracy check of the period is the postclosing trail balance.

Correct typical accounting errors. Accountants correct errors by making correct journal entries.

Classify assets and liabilities as current or long-term. The balance sheet reports current and long-term assets and current and long-term liabilities. It can be presented in report format or account format.

Use the current & debt ratios to evaluate a business. Two decision-making aids are the current ratio-total current assets divided by total current liabilities-and the debt ratio-total liabilities divided by total assets.

New Words

accounting cycle 会计循环 account balance 帐户余额

journalize 记日记帐 ledger 分类帐,分户帐

ledger account 分户帐目 completion 完成,结束

multicolumned 栏目纵横的 worksheet 备忘单,工作底稿

compute 计算,估算 closing entries 项目终结

elaborate 详尽阐述的 withdrawal 提款

temporary account 临时帐户 permanent account 永久帐户

postclosing trail balance 结帐后试算 current 流动的,通用的

report format 报告试 account format 帐户试

ratio 比率 current ratio 流动比率

debt ratio债务比率 divide 整除
关键字:会计英语
生词表:
  • completion [kəm´pli:ʃən] 移动到这儿单词发声 n.完成;完整 四级词汇
  • equity [´ekwiti] 移动到这儿单词发声 n.公平;公正 六级词汇
  • classify [´klæsifai] 移动到这儿单词发声 vt.把...分类(归类) 四级词汇


文章标签:会计英语    

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