1. Basic concepts

9. Prepare Financial Statements. Financial Statements are used to report the financial position

and results of operating a business. They are the Balance Sheet, Income Statement, and Cash Flow Statement.

10. Close. The accountant prepares closing entries for the temporary Owner’s Equity accounts such

as the Revenue and Expense accounts. The closing entries are recorded after the financial

statements for the accounting year are prepared. The reason for the closing entries is to ensure that each revenue and expense account will begin the next accounting year with a zero balance.

11. Post-closing Trial Balance. The accountant checks the accounting equitation after the close. Summary

Let’s recall what have been studied in this training lesson:

Accounting equation: Assets = Liabilities + Owner’s Equity Double entry system: Debit = Credit Purchase process analyses Sales process analyses. Accrual basis of accounting Chart of accounts Financial statements – Balance sheet, Income statement Accounting cycle

In the next training lessons, we will make a purchase in Microsoft Dynamics AX and analyze the results