financial worksheet
which 3 financial statements have to be in balance?
statement of operations, statement of net assets, balance sheet
what does the worksheet have to do or it will not be correct?
balance
what account do we use to close the books?
revenue/expense summary account
what are the sub accounts for statement of operations, statement of NA, and balance sheet
statement of operations: revenue and expenses
statement of NA: NA and profit/loss
balance sheet: A,L,E
what is each statement's purpose in the worksheet?
operations: was there a profit/loss
NA: what is the net change
BS: does A= L +NA
increasing/ decreasing na account
decrease na by debit
purpose?
to determine what account may have an accounting error
numbers of each account
1- net assets
2-libability
3- NA
4- revenue
5- revenue deductions
6- expenses
bonus: what is the final step of the financial accounting cycle?
generate reliable and valid financial statement