Although this chapter purports to review the accounting process, many students find it anything but a review. Perhaps it has been a number of years since the student took Accounting Principles, or maybe the student’s foundation from Accounting Principles isn’t what it should be. Regardless of the student’s background, this “Review of the Accounting Process” really lays the foundation for all of the chapters to come by detailing the various components of the Accounting Cycle.
In order to truly understand these components, the student needs to understand the significance of debits and credits, be ever mindful of the basic accounting equation and double entry accounting, and be able to categorize transactions or events into the basic accounting elements. While this sounds simplistic, it is often these basic foundational components that cause problems. It is these foundational components that form the basis for Chapter 2.
The narrated PowerPoint lecture for this chapter has been broken into three parts. Part 1 focuses on double entry accounting. Part 2 looks at the first three components of the accounting cycle that are ongoing through the year – transaction or event that is journalized and posted. Part 3 deals with the remainder of the accounting cycle that takes place at the end of the accounting period – unadjusted trial balance, adjusting entries, adjusted trial balance, basic financial statements, closing entries, post closing trial balance, and reversing entries. The narrated PowerPoint lectures and solutions to selected exercises and problems can be found here.