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A feature story illustrates month-end reporting, adjusting entries, and error correction.",{"@graph":14,"@context":72},[15,34,55],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/exam/","Exam",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/document/chapter-4-completion-of-the-accounting-cycle-study-objectives/663504/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/chapter-4-completion-of-the-accounting-cycle-study-objectives/663504.png","ImageObject",300,407,{"name":42,"@type":43},"Asher","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-10-29","2026-10-28",true,{"@type":52,"interactionType":53,"userInteractionCount":22},"InteractionCounter",{"@type":54},"ViewAction",{"@type":56,"mainEntity":57},"FAQPage",[58,64,68],{"name":59,"@type":60,"acceptedAnswer":61},"What can you do after studying Chapter 4?","Question",{"text":62,"@type":63},"Prepare closing entries and a post-closing trial balance, list steps in the accounting cycle, and prepare correcting entries. The chapter also guides classified balance sheet preparation and liquidity evaluation measures.","Answer",{"name":65,"@type":60,"acceptedAnswer":66},"How do temporary accounts and permanent accounts differ?",{"text":67,"@type":63},"Temporary accounts collect data for a single accounting period and are closed at period end, while permanent accounts carry balances into the next period and are not closed.",{"name":69,"@type":60,"acceptedAnswer":70},"What is the purpose of correcting entries at month end?",{"text":71,"@type":63},"Correcting entries update or fix items so errors are located and resolved regularly. 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How to apply the revenue recognition and matching principles. (Ch. 3, p. 105)  \nb. How to make adjusting entries. (Ch. 3, pp. 108–119)  \nc. How to prepare an adjusted trial balance. (Ch. 3, pp. 123–124)  \nd. How the balance sheet, income statement, and statement of owner’s equity are connected.(Ch. 3, pp. 124–125)  \nBreezing through the Month End with Style  \nWINNIPEG, Man.—Owned and operated by the Gorenstein family of Winnipeg, Moulé has four gallery-style retail stores in Vancouver and Winnipeg. Each one features gifts, jewellery, and other treasures from around the world. The items have been crafted by talented artists working in glass, ceramics, metal, and other media. Founded in 1987, Moulé also designsand manufactures a signature line of soft, feminine, and sophisticated women’s apparel. The clothing is sold in Moulé stores and distributed across North America and as far away as Japan.  \nMonth end finds Moulé’s chief operations officer, Laurie Gorenstein, running off extra reports for things like sales, GST and PST, commissions, and inventory on the Smart Vendor computer software he uses for most of the company’s accounting. (He tracks payables with an Excel spreadsheet.)“Basically, I receive all the invoices from the stores at month end and check them against the figures in the computer. Then I run the general ledger and the trial balance.”  \n“My accountant checks them, and we make any updates or corrections necessary—such as a cheque posted to the wrong account—with an adjusting or correcting entry,” he continues. By checking things monthly, “it usually comes out pretty smoothly.” Monthly financial statements then follow.  \n“So it really is pretty easy,” says Mr. Gorenstein. Once a year, the load gets a little heavier when the books are  \nclosed—as with many businesses, Moulé’s fiscal year ends December 31—and the year’s financial statements are prepared. At this point, he’s very glad of the care taken to find discrepancies and to make adjustments at month end. If errors are left undetected, “then they come back to haunt you months later and you can spend forever trying to sort them out.”  \nMoulé recently set up an “open-to-buy” system, which allows the store to use past sales data to predict future sales. By inputting merchandise sales daily and analyzing this information monthly, Mr. Gorenstein can track what sells best when, which leads to better planning and purchasing decisions. “The ‘open-to-buy system’ is specific to 20 different categories of merchandise, so we know what month is best for each,” he explains. And tracking the merchandise so closely also significantly reduces the potential for error on the financial side.  \nthe navigator   \n Understand Concepts for Review   \n Read Feature Story   \n Scan Study Objectives   \n Read Chapter Preview   \n Read text and answer Before You Go On   \n Work Demonstration Problem   \n Review Summary of Study Objectives   \n Answer Self-Study Questions   \n Complete assignments   \nc h a p t e r 4  \nCompletion of the Accounting Cycle  \nstudy objectives >>  \nAfter studying this chapter, you should be able to:  \n1. Prepare closing entries and a post-closing trial balance.  \n2. List the steps in the accounting cycle.  \n3. Prepare correcting entries.  \n4. Prepare a classified balance sheet.  \n5. Illustrate measures used to evaluate liquidity.  \n6. Prepare a work sheet (Appendix 4A) .  \n7. Prepare reversing entries (Appendix 4B) .  \n 4   \n163  \nchapter  \nP r e v i e w o f C h a P t e r 4  \nstudy objective 1  \nPrepare closing entries anda post-closing trial balance.  \nIllustration 4-1 ▶  \nTemporary versus permanent accounts  \nIn Chapter 3, we prepared financial statements directly from the adjusted trial balance. In this chapter, we will explain what the remaining steps in the accounting cycle are for—especially the closing process. Once again, we will use the Pione","cbCaidyWilpqOZZq","https://ap.wps.com/l/cbCaidyWilpqOZZq","pdf",4421057,56,"English","# Completion of the Accounting Cycle\n## Study Objectives\n## Closing the Books\n## Temporary versus Permanent Accounts\n## Outline of the Chapter Sections","[{\"question\":\"What can you do after studying Chapter 4?\",\"answer\":\"Prepare closing entries and a post-closing trial balance, list steps in the accounting cycle, and prepare correcting entries. The chapter also guides classified balance sheet preparation and liquidity evaluation measures.\"},{\"question\":\"How do temporary accounts and permanent accounts differ?\",\"answer\":\"Temporary accounts collect data for a single accounting period and are closed at period end, while permanent accounts carry balances into the next period and are not closed.\"},{\"question\":\"What is the purpose of correcting entries at month end?\",\"answer\":\"Correcting entries update or fix items so errors are located and resolved regularly. The chapter emphasizes that undetected errors can cause problems later.\"}]","chapter 4 - Completion of the Accounting Cycle - Study Objectives | PDF",141]