In the last workshop, we strengthened our knowledge of financial statements and how they could be used to support managerial decision making. In this workshop, we are taking a peek behind the curtain at the inner workings of the processes used to develop financial statements. This assignment will give you an opportunity to practice creating journal entries, T-accounts, and adjustments. The proper recording of transactions is the foundation upon which financial statements are built. By deepening our understanding of the processes which support financial statements, we can become wiser consumers of financial data and better decision makers.
Upon successful completion of this assignment, you will be able to:
Managers and other decision makers depend on financial statements. They are essential inputs to strategic decision making. However, for a leader to base important decisions on data they don’t understand would be foolhardy. To be a more effective user of financial data, decision makers need to understand how financial statements are constructed, what their limitations are, and what insights they can give. With a firm understanding of accounting processes, leaders will be able to better judge how their decisions will impact the company’s financial position.
For this assignment you will complete a series of short exercises designed to help you practice creating journal entries, T-accounts, and adjustments, and to demonstrate your understanding of basic accounting procedures.
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