Accounting is frequently considered as the business language. Learning accounting is a useful skill whether you want to be an accountant, studying business, or are just seeking to better understand your own money. However, navigating the accounting world may be difficult, especially when it comes to passing accounting tests. Passing the test is not like asking Take My Class, you have to prepare yourself.
In this guide, we will go through the world of accounting, from the fundamentals of ledgers and journals to the complexities of creating financial statements. After this guide, you can still ask someone to take my accounting exam for me to pass the exam.
Accounting Equation
Accounting is built around a fundamental idea known as the “accounting equation.” It serves as the foundation for all accounting transactions and may be summarized as follows:
Assets = Liabilities + Equity
Assets: These are the assets that a company owns. They can be either physical (such as money, equipment, or inventory) or intangible (such as patents or trademarks). A company’s assets are what it utilizes to produce revenue.
Liabilities: A company’s liabilities are its obligations. These are the external obligations and responsibilities required by the firm, such as accounts, loans, payable, or salary payable.
Equity: Equity, often known as “owner’s equity” or “shareholder’s equity,” is the remaining stake in the entity’s assets after subtracting obligations. It effectively symbolizes the owner’s claim on the assets of the firm.
The Accounting Cycle: A Roadmap
Accountants use a process known as the accounting cycle to produce accurate financial statements. For Conquering accounting exams you need to know the roadmap. Here’s a quick rundown:
Step 1: Identifying Transactions
The occurrences or trades that impact a company’s financial status are referred to as transactions. The first stage in the accounting process is to identify these transactions.
Step 2: Keeping Records of Transactions
Journal entries are kept in chronological order. journals are classified according to their purpose, such as cash receipts, cash disbursements, and sales diaries. Each entry in a journal contains information about the transaction, such as the date, accounts involved, and amounts.
Step 3: Ledger posting
Ledgers get information from journals. Specific accounts, such as cash, receivables, and accounts payable, are used to categorize ledgers. Posting is the process of moving journal entries to the appropriate ledger accounts.
Step 4: Create the Trial Balance
A trial balance is a record of all debit and credit ledger account balances at a certain point in time. It acts as an early check of accounting correctness and helps verify that debits match credits.
Step 5: Adjusting Entries
At the close of an accounting period, adjusting entries are made to account for items such as accumulated costs, prepaid goods, and depreciation. They guarantee that financial accounts accurately represent the amounts. Finance is about data analytics, risk management, investment strategy, and capital allocation(Lough, 1919).
Step 6: Prepare Financial Statements
The adjusted trial balance is employed in the preparation of financial statements such as the balance sheet, income statement, and cash flow statement. These statements give an overview of the financial performance of an organization and its status.
Step 7: Closing Entries
At the end of an accounting period, closing entries are performed to reset the expense and revenue accounts to zero. This procedure gets the books ready for the subsequent accounting period.
The Goal: Financial Statements
The ultimate result of the accounting procedure is financial statements. They give essential information on the financial well-being and achievements of a firm. Here are the essential financial statements you must understand:
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Profit and Loss Statement
The income statement, commonly known as the statement of profit or loss, summarizes a company’s sales, costs, and net gain or loss for a certain time period. It gives information on a company’s profitability.
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Balance Sheet
The balance sheet shows a company’s financial situation at a specific point in time. It includes a list of assets, liabilities, and equity. The balance sheet follows the basic accounting equation.
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Cash Flow Statement
The cash flow statement records the input and outflow of cash inside a business over a given time period. It is broken down into three categories: operational activities, investment activities, and financing activities.
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Owner’s Equity Statement
This statement summarizes changes in the owner’s equity over time. Although Albert Einstein stated that the only constant in this world is change, organizations appear to disregard this in their business practices(eazyresearch, 2022). It considers investments, withdrawals, and the income statement’s net income or loss.
Accounting Exam Preparation Tips
Now that you have a solid knowledge of accounting concepts, we’ll look at some useful Strategies for success in accounting exams:
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Understand the Fundamentals
Start by understanding the fundamental ideas, such as the accounting equation, the accounting cycle, and the many kinds of financial statements. Having a solid basis will make advanced topics much easier to handle.
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Practice Regularly
Accounting is a talent that can be honed through practice. Practice a variety of exercises and problems to solidify your grasp of accounting fundamentals. Practice questions can be found in textbooks, internet sites, or from your professors.
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Understand the Why
Don’t just learn processes; try to comprehend why certain transactions are documented in a specific manner. This understanding will assist you in solving difficult accounting problems and adapting to varied settings.
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Stay Organized
Organize your notes, textbooks, and assignments. Color coding or digital technologies can help you easily organize and locate information.
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Seek Help When Necessary
If you face difficult topics or queries, don’t be afraid to seek assistance from your professors, classmates, or internet forums. Accounting may be difficult, yet teamwork can bring useful insights.
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Make a Study Schedule
Create a study routine that enables you to consistently review and practice. Accounting mastery requires consistency.
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Simulate Exam Conditions
Simulate exam circumstances as closely as possible when practicing. To gain a sense of the exam situation, time yourself and work under pressure.
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Review Previous Exams
Use prior tests or sample questions to assess your preparation if you have access to them. They frequently provide insight into the sorts of queries you may encounter.
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Stay Calm and Confident
Stay cool on exam day and tackle each question systematically. Start with the easy questions to gain confidence, and then go on to the more difficult ones. You’ve worked hard to prepare, and you can do it.
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Use Visualization Techniques
Accounting often involves complicated ideas and sophisticated inter-account linkages. Consider employing visualization tools such as flowcharts, diagrams, or mind maps to graphically depict these notions. Visualization may help you understand how different components of financial accounts and transactions are related and make theoretical concepts more real.
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Teach Others
Teaching accounting to someone else is one of the most effective methods for combining your understanding. Accounting topics may be emphasized and holes in your comprehension revealed by explaining them to a study group or a buddy. Teaching pushes you to explain concepts clearly and coherently, which improves your subject matter expertise.
Conclusion
Accounting may appear daunting, but with perseverance and the appropriate technique, you can pass your accounting tests and obtain a thorough grasp of this vital profession. Remember that accounting is about communicating the story of a company’s financial health and success, not just statistics. By knowing the principles, practicing regularly, and being focused, you may effectively navigate the world of accounting and accomplish your academic or professional goals.
Reference list
ER., (2022). Traditional Marketing vs Digital Marketing. Online Available at https://eazyresearch.com/blog/traditional-marketing-vs-digital-marketing/ [Accessed on 5 April 2022]
Lough, W. H. (1919). Business finance. Рипол Классик.