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Accounting & Financial Reporting. BUSG 503 Michael Dimond. Financial Accounting for MBAs. Let’s review Exercises E2-27, 28, 29, 33, 34, & 37 Chapter 3 Mini Exercises. E2-37. What’s Chapter 3 really all about?. Closing the books: When & why What NOT to do during close
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Accounting & Financial Reporting BUSG 503Michael Dimond
Financial Accounting for MBAs • Let’s review • Exercises E2-27, 28, 29, 33, 34, & 37 • Chapter 3 Mini Exercises
What’s Chapter 3 really all about? • Closing the books: When & why • What NOT to do during close • Trial balance & adjustments • Beginning trial balance • Adjustments • Closing trial balance • Closing transactions • Revenue, Expenses, Dividends • Post-close trial balance • Become beginning balances for next period • Preparing Financial Statements • Managers want results which make them look good • Accountants want results which are “representationally faithful”
After we know closing balances from last period • Cash received or paid before recognition of revenue or expense: • Prepaid expenses • Unearned revenues • Cash received or paid after recognition of revenue or expense • Accrued expenses • Accrued revenues
For next week… • Exercises E3-30, 36, 38a (not 38b or 38c) • We will go through these in class • Read Chapter 4 & preview the Mini Exercises
