Explain about closing process, Accounting Basics

Assignment Help:

Q. Explain about closing process?

Expense, revenue and dividends accounts are nominal (temporary) accounts that are merely sub classifications of a real (permanent) account Retained Earnings. You as well learned that we prepare financial statements for certain accounting periods. The closing process transfers (a) the balances in the revenue and expense accounts to a clearing account called Income Summary and after that to Retained Earnings and (b) the balance in the Dividends account to the Retained Earnings account. The closing process reduces expense, revenue and Dividends account balances to zero thus they are ready to receive data for the next accounting period. Accountants may perform the closing process monthly or annually.


Related Discussions:- Explain about closing process

Assignment 3, Financial accounting reports are mandatory to be prepared by ...

Financial accounting reports are mandatory to be prepared by the firms, and are scrutinized by auditors, creditors or Government or Tax authorities. But management accounting recor

Characteristics of partnership , Can you give me a more simple definition o...

Can you give me a more simple definition of Mutual Confidence and give me an example of a situation of it

How is a po (purchase order created), A document or shape used by a custome...

A document or shape used by a customer to issue an order for goods or services. I need notes on 1.Procure to pay cycle with accounting entries 2.give to cash

The amortization schedule, San Jose Company issued 5-year $200,000 face val...

San Jose Company issued 5-year $200,000 face value bonds at 105 on January 1, 2012. The stated interest rate on these bonds is 9%. Use the straight line situation to complete the a

A company''s sales volume averages 4, A company’s sales volume averages 4,0...

A company’s sales volume averages 4,000 units per year.  Recently, its main competitor reduced the price of its product to $48.  The company expects sales to drop dramatically

Prepare the journal entry, Assume that the following are independent situat...

Assume that the following are independent situations recently reported in the Wall Street Journal. 1. National Electric 8% bonds, maturing January 28, 2013, were issued at 112.16.

Explain about cash discount, Q. Explain about cash discount? In a few i...

Q. Explain about cash discount? In a few industries credit terms include a cash discount of 1 percent to 3 percent to induce untimely payment of an amount due. A cash discount

Illustrate unearned service fees, Q. Illustrate unearned service fees? ...

Q. Illustrate unearned service fees? Micro Train reports the service income in its income statement for 2010. The company enters the USD 3000 balance in the Unearned Service Fe

Accounting framework, The conventions and rules of accounting are commonly ...

The conventions and rules of accounting are commonly termed as the conceptual framework of accounting. Along with any discipline or body of knowledge, several underlying theoretica

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd