Preparation Of Reconciliations, Financial Statements, And Trial Balances

Front 1

The process of taking subsidiary ledger accounts (as opposed to
general ledger accounts), closing them, and posting the results on the general (also known as control) ledger.

Back 1

Reconciliations

Front 2

Once all subsidiary accounts are reconciled what can be done next?

Back 2

The trial balances and financial statements can be prepared.

Front 3

What are the main financial statements?

Back 3

income statement

retained earnings statement

balance sheet

Front 4

Why is the income statement prepared first?

Back 4

Because net income must be figured out before retained earnings can be completed.

Front 5

What needs to be done before the journal entries for the period can be
added to the general ledger?

Back 5

A trial balance must be taken

Front 6

What is done during the trial balance?

Back 6

A balancing of general the ledger/control accounts (debit=credit) to ensure all previous accounting activity is correct

Front 7

The adjusted trial balance must be used to prepare what?

Back 7

Financial Statements

Front 8

Partnership accounting hinges on what one important concept?

Back 8

Who has control of which assets

Front 9

Corporate accounting hinges on what?

Back 9

The presence or absence of stockholders. Shareholders or lack thereof is the primary determinant of how a corporation goes about its processes that influence accounting