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Business LibreTexts

4.1: Learning objectives

  • Page ID
    19996
  • After studying this chapter, you should be able to:

    • Summarize the steps in the accounting cycle.

    • Prepare a work sheet for a service company.

    • Prepare an income statement, statement of retained earnings, and balance sheet using information contained in the work sheet.

    • Prepare adjusting and closing entries using information contained in the work sheet.

    • Prepare a post-closing trial balance.

    • Describe the evolution of accounting systems.

    • Prepare a classified balance sheet.

    • Analyze and use the financial results—the current ratio.