Company Closing Process - Essay Example

Only on StudentShare

Extract of sample
Company Closing Process

Basically there are three procedures completed under month-end process: adjustments, calculations and reporting. Adjustment is the first step where necessary amendments are done on the financial data or information already recorded. During the month, the organization earns revenue and incurs expenses and matches the two. This practice, result in differences between the estimated amount and the actual amount of an item (Bosua & Beer, 2009). For example, interest expense incurred on the prevailing firm’s loans increase the amount to be paid (principal and interest). The original amount to be paid was the principal, while the actual amount paid at month end is the principal plus interest. Therefore, adjustment has to be made to reconcile the two amounts. Calculations After the above adjustments are made, the affected individual accounts have to be updated. The amounts for adjustment are calculated and appropriate entries made to the appropriate ledger accounts. For example, in bank accounts adjustment calculations, it is started with the opening balance, add on the deposits made and then subtract the debits for that month. The final figure got, reflect the actual cash balance on the bank account as opposed to the opening balance figure. Reporting After ascertaining the actual amounts of each ledger account, the figures are entered into the organizations database. ...Show more

Summary

Company Closing Process Institutional Affiliation Company Closing Process Part one Month-end closing process It is also referred to as end month procedures. They denote the required tasks for ensuring that an entity’s financial records are poised prior to the start of a new month…
Author : gladycefritsch
Save Your Time for More Important Things
Let us write a custom essay on your topic
"Company Closing Process"
with a personal 20% discount.
Find out more

Related Essays

The nature of the budgeting and planning process
Task 2 Purpose, Nature, and Benefits of the Planning and Budgeting Process According to Williamson (1996), the budgeting and planning process refers to the application of budgetary control techniques to forecast receipts and expenses of cash in future fiscal periods.
7 pages (1750 words) Essay
Essentials of corporate financial management
The literature (Arnold, 2007, Brealey et al, 2006) on finance and accounting would seem to indicate that the NPV methodology is one of the most comprehensive and reliable tools to use in a project appraisal. The advantages of NVP are that firstly the tool recognises the time value of money by using a discount rate (12% in this case), often WACC is used as the discount rate (Tennentt, 2008).
8 pages (2000 words) Coursework
Auditing process
One of such important relationship is between the audit farm or the auditor and the audit client. The potential risk involved in the association with a certain audit client asks for an audit farm to decide on whether to continue with the existing client or not.
8 pages (2000 words) Case Study
Financial Analysis:Estimation of the equity value of the company
The first and foremost step of the equity valuation process is obtaining a decent understanding of the entity and industry to which that particular entity belongs. It is imperative to analyze the financial reports of the corporation because based on these figures and facts the forecast of the future is prepared which eventually assists in determining the value of the equity.
13 pages (3250 words) Essay
Audit of Panera Bread Company Quality Service and Market Share Process
Main Risks & Financial statement applications One significant risk of the quality service process is the risk of company image. When a company has a lousy reputation, its accounts payable rise more than the revenue the company generates from the services it offers.
4 pages (1000 words) Research Paper
Critical Assessment and comparison of the Competitive and Profitabbility of UK food retail Sector and the UK Oil and Gas Sector
The paper further provides a summary of firm and industry strengths and weaknesses in relation to the future opportunities and threats. UK Food Retail Industry SWOT Analysis: Strengths: UK retail sector is the largest service industry of United Kingdom with employing over three million people in the sector.
11 pages (2750 words) Essay
Operational Risk Management of xx company
man Brothers Company began in 1850 through predecessor entities. From establishing the New York Cotton Exchange, it became the fourth largest investment bank in 1868 with a network of offices in Europe, North America, the Middle East, Latin America and the Asia Pacific region.
12 pages (3000 words) Essay
Job Order versus Process Costing Techniques
Finally, the essay will explore companies that can effectively use the two systems based on the analysis of the differences between the two costing approaches. To begin with, before assigning costs to products and services, it is always necessary to accumulate the costs involved in the operation.
4 pages (1000 words) Research Paper
company analyses
The ratio analysis has been done for both the businesses in order to understand their business situation in terms of profitability. The next part of the study would be highlighting the promotional plans adapted by each business. It would be reflected by means of a forecasted profit and loss statement for both the businesses.
9 pages (2250 words) Book Report/Review
Corporate Valuation and Strategy ASSIGNMENT 3 VALUATION OF H. J. HEINZ COMPANY AS OF APRIL 29, 2012
The Company has existed as one of the most competitive companies in the food industry for over 140 years. The Company’s main products include condiments, frozen food, beans, infant nutrition, ketchup and
6 pages (1500 words) Assignment
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT