Overview
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Take your bookkeeping skills to the next level with these accounting-based strategies for managing financial entries.
Syllabus
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Introduction
- Advancing your bookkeeping skills
- Two things to remember for debits and credits
- Journal entries: Receiving financing from owners and lenders
- Journal entries: Buying assets and repaying loans
- Journal entries: Recording revenues and expenses
- Accrual accounting: Net income vs. cash flow
- Fix the balance sheet, then fix the income statement
- Recording the paying for and then use of prepaid expenses
- Recording the receipt of and earning of unearned revenue
- The matching principle
- Recording expenses with liabilities that slowly build up
- Recording revenue with assets that slowly build up
- End-of-period estimates such as depreciation and bad debts
- What are retained earnings?
- The difference between a real and a nominal account
- Updating retained earnings and resetting nominal accounts
- Practice with the debits and credits of closing entries
- The important raw data in the trial balance
- Posting the journal entries to the ledger accounts
- Creating a trial balance
- Using a trial balance to prepare a balance sheet
- Accounting restatements: The case of Groupon
- Error correction: Recording something in the wrong account
- Error correction: Increasing or decreasing the amount
- Error correction: Fixing an error made last year
- The role of external auditors in the accounting cycle
