4 - The Accounting Cycle and Closing Process

[@dirtyscalper5584]

If I saw this fella without knowing anything about him I'd automatically assume he's an accountant - he's just got the accountant look down to perfection.

[@angelhodgdon1127]

Some people don't agree with using the Income Summary account because they think, "why should you have ANOTHER temporary account that you just close too anyway?" But I like the idea of using an Income Summary account. It's a neat & tidy way to not only close the nominal accounts, but it's a great way to double check things as you go along. Not to mention, it really drives home the impact of closing entries. It also gives you a physical reference of each of the steps in the closing process. With today's totally tech society it really helps sometimes to just slow down; look at each step along the way and really understand what's happening in the background of that computerized accounting program. Just a thought... Thanks for sharing all the great info & videos. I've learned a lot!

[@roofvis]

Probably the best accounting video on youtube...

[@edwinnyaanga3861]

Not until you find one Kristine Duke

[@LarryWalther]

The closing process is discussed in chapter 4 of the online textbook. Dividends don't impact income; they are distributions to shareholders that reduce retained earnings directly. Revenues and expenses could be closed to retained earnings directly as well, but we use the "Income Summary" account here as an intermediary step to aid in the learning process.

[@JANAlifestylevlogger]

thank you for posting this Larry. I find the video to be extremely useful and well explained.

[@augustayarteh7524]

Professional explanations to know a closing circle.Thanks so much sir. Well understood.

[@MMNNLL2468]

Thank you! i studied this 8 years ago and didn't get it until now!

[@ahsanmohammed1]

Great videos sir! Much appreciate them! Thank you so much! Can you please organize your playlists so that they are in chronological order. Thank you sir.

[@sjdchannel137]

Larry sir very clear discription thsnl you so much a separate video on computrizez accounting software would be much more beneficial for us

[@huangsharon4638]

You are the BEST! Thank you Larry.

[@sompongmoss281]

I love the numbers, and if we are put the number together right, they can be fun.

[@favstarr01]

I agree. The information is correct, but he needs to slow it down a whooooole lot so that it is more easily digestible.

[@LP-sy3md]

Very good! Thank you for your clear explanation!

[@siddiqueharunany3363]

This is fine and very good. I would like to know how your PNL looks like as at end of year. Will it show 0? Secondly how are reversals done for financials which have stocks and cost of goods sold which form part of the profit (Retained earnings)?

[@LarryWalther]

The textbook illustrations use generic layouts that would be similar to those of many different software products.

[@toreyburse1324]

thanks . very clear and precise .

[@Its_Lu_Bu]

you are a godsend sir. thank you.

[@nateoliver3285]

Is this done once at the end of the year? Or quarterly? Monthly?

[@cmaman1]

Thank you Larry

[@phongvo9989]

i would like to ask which accounting software are you using?

[@limichael1519]

Are u from TX Larry?

[@ingamulesiraji2747]

This was wonderful

[@rosmaryalgarin9292]

thanks for the advice is clear and complette

[@rayrivera1830]

about computerization, I guess the reason for closing like each month is to be in control...without closing you might get off balance by errors?

[@number7season]

Why aren't dividends taken off at the same time as expenses and revenue? Just so you can see how much dividends were on the income statement?

[@kumaramit680]

It’s really great

[@shajan6670]

Excellent.

[@ngavtt1]

Thank you!

[@Anyone700]

A little music, almost too low to hear, in the background with tapered volume at the beginning and end of the video would have helped my focus more on what Larry was saying.

[@kumaramit680]

Very useful

[@gavinbonser3602]

Life is like a box of receipts, ya never know what your gonna get

[@yojarajajeyakanesh7600]

super