Closing the Books (Currently Unavailable)

Author: Steven Bragg

Closing the Books: An Accountant's Guide demonstrates how the accounting systems summarize information into financial statements, how to close the books efficiently, how to construct financial statements, and the controls and record keeping systems needed to close the books.

Publication Date: July 2014

Topics Covered

• General ledger and other ledgers
• Trial balance
• Journal entries
• The closing process
• Fine-tuning the closing process
• Closing cash
• Closing accounts payable and receivable
• Closing inventory
• Closing fixed assets
• Closing payroll
• Income statements
• Balance sheet
• Statement of Cash flows
• Statement of Retained Earnings
• Financial statement disclosures

Learning Objectives

• Identify the types of subsidiary ledgers.
• Note the applications of the different types of trial balances.
• Cite the types of journal entries used to modify account balances and record transactions.
• Recognize the core and delayed steps used to close the books.
• State the methods used to fine-tune the closing process, and which activities do not improve the process.
• Identify bank reconciliation terminology, as well as the applicability of petty cash reconciliations.
• Cite the situations in which revenue can be recorded, as well as how to rebill expenses.
• Identify the methods used to assign costs to inventory and increase the accuracy of inventory records.
• Note the rules related to fixed asset recordation and impairment, along with associated terms.
• State how accounts payable are handled and the associated expenses recorded.
• Identify the recordation decisions associated with payroll transactions.
• State the formats in which the income statement can be presented, and note the source of income statement information.
• Recognize the proper classification of line items on the balance sheet, and note how the balance sheet is constructed.
• Identify the contents of the statement of cash flows.
• Identify the contents of the statement of retained earnings.
• Cite the types and contents of disclosures that can accompany the financial statements.
• State the criteria used to identify a reporting segment, as well as the required segment reporting.
• Identify the decision points associated with the integral and discrete views of interim reporting.
• Cite the methods used to calculate the various types of earnings per share.
• State the additional steps involved in closing the books of a public company, including the additional types of required approvals.
• Recognize the controls that should be imposed on the closing process.
• Identify the types of records associated with closing the books that should be stored.
• Cite the situations under which a soft close can produce errors, and the benefits of using a virtual close.

Level
Overview

Instructional Method
Self-Study

NASBA Field of Study
Accounting (13 hours)

Program Prerequisites
none

Advance Preparation
none