Ch4. Video 9 - Accounting Cycle for Merchandising Business Example Part 2

This video tutorial covers the process of creating an adjusted trial balance and financial statements, including a multi-step income statement, statement of retained earnings, balance sheet, and statement of cash flow. The tutorial emphasizes the importance of understanding the accounting cycle and provides detailed explanations of each financial statement component, ensuring that debits and credits are balanced and that all financial activities are accurately recorded.

What adjustments are made to the trial balance before preparing financial statements?

What is the role of non-operating activities in the income statement?

What are the main sections of the statement of cash flows?

How do you determine the ending cash balance in the statement of cash flows?