Jeff Sailor continues his stylistic treatment of Stephen Bragg's Accountant's Guidebook. This course covers chapters 18-20. From time to time, a company will find that it must change its accounting to reflect a change in accounting principle or estimate, or it may locate an accounting error that must be corrected. This course outlines the rules for both situations and how to disclose them, as well as for several related situations. The course will also review the great many steps required to close the books and issue financial statements by providing an overview of the most prevalent closing activities that you are likely to need.
Upon successful completion of this course, participants will be able to:
- Choose an example of a change in accounting estimate.
- Identify a situation where you would adjust the financial statements of prior interim periods of the current fiscal year.
- Cite when to change an accounting principle and the type of change that requires retrospective application to prior accounting periods.
- State why generating customer invoices is an essential part of the closing process and why you want to eliminate intercompany transactions.
- Cite the basis for accruing a tax liability.
- Specify a situation where a reserve should not be created.
- Identify why you must close subsidiary ledgers when closing the books.
- Define a net operating loss carryforward.
- Define the purpose of the comparative balance sheet and the statement of retained earnings.
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