Preparation of financial statements and closing of accounts

Overview

Preparing financial statements and closing accounts Developing financial knowledge is essential in today’s economy, and improving knowledge about the fundamentals of accounting and financial management is a useful first step. In this course, you will explore the financial fundamentals that will allow you to understand the main steps in the management of finance in the accounting cycle. You will learn how, after completing your transaction recording and posting in the registers, you are ready to start preparing your financial statements. You will learn about income statements, balance sheets, cash flow statements and how they are interconnected. You will also learn about the steps involved in closing accounts.

Objectives

• matching the financial statements with their descriptions
• recognizing the examples of the components of the income statement
• ordering the stages of calculating the income statements
• matching the components of the balance sheet with their descriptions
• arranging the steps for preparing a balance sheet
• matching each component of the cash flow statement with the description
• arranging the steps for preparing a cash flow statement
• arranging the steps for closing accounts