DESCRIPTION
This module describes what a general ledger is and its function. It also discusses the importance of journal entries and tips on how to identify when a financial statement account may need adjusting. The module concludes with a discussion on financial statement ratio analysis and how this analysis can be used to identify misstatements as well as drawing conclusions and providing analysis on a client’s financial health.
LEARNING OBJECTIVES
- Navigate a client’s general ledger system to facilitate analysis
- Reconcile subsidiary ledgers
- Identify when journal entries may be required
- Evaluate the propriety of client recorded adjusting journal entries
- Understand common financial reports and statements prepared for both internal and external users
- List the different bases of accounting and the factors used to select one
- Perform ratio analysis on a set of financial statements and draw preliminary conclusions based upon the analysis
