This book describes the accounting cycle system used to record financial data in most businesses. To understand the accounting cycle the reader must be familiar with the terminology used in accounting. The book will help students who are struggling with the accounting cycle by focusing on common mistakes, and explaining the logic behind this system. Using this common sense approach, students can quickly learning the basic concepts of financial accounting and will be able to identify and correct mistakes in logic and applications.
This book is ideal for students in three types of courses: 1) students in lower division courses in business and related fields required to complete a study of financial accounting, 2) students enrolled in graduate business programs with an undergraduate degree that did not require accounting, and 3) first semester accounting majors.
Financial accounting uses a simple mathematical equation known as the double-entry system to efficiently manage numerical data that is collected, recorded, summarized, and organized about business events and activities to create financial information and makes use of the accounting terms of debits and credits to represent increases and decreases in the double-entry system. This is known as the accounting cycle. A loss of confidence by students occurs when they are unable to identify where they have made mistakes in their understanding of accounting.
As with any process, completion involves systematic steps to attain the ultimate goal. The accounting cycle is no different, and it is the purpose of this eBook as well as the desire of the authors to remove the mystery of basic accounting and help students understand why the accounting cycle plays such a vital role in the success of any business entity even for those not planning to become accountants.