Introducing Financial Statements Assignment | Buy Assignments Online
Complete a 4-part assessment that requires you to categorize balance sheet accounts, prepare a balance sheet, prepare an income statement, and analyze items in a financial statement.
Because the balance sheet reflects all journal entries affecting the business since inception, knowledge of the placement of each account is essential to preparing a financial statement. Likewise preparation of the balance sheet, or statement of financial position, is an essential skill and requires the accountant to take information from the accounting system and summarize it in a single location. Generally accepted accounting principles (GAAP) require organizations to prepare both an income statement and a balance sheet. Before the balance sheet can be prepared, the organization’s net income must be determined. Finally, balance sheets do not always balance once they are prepared, and income statements do not always contain correct account data. This can cause havoc across the accounting department and requires the accountant to locate the missing or incorrect data.
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:
- Competency 2: Apply accounting cycle strategies to manage business financial events.
- Determine the correct balance sheet category for accounts.
- Analyze specific financial information from a company’s financial statements.
- Competency 3: Prepare financial statements from accounting system data.
- Prepare a balance sheet for a company using appropriate financial data.
- Prepare a summarized income statement for a company using appropriate financial data
