Short Paper: The Accounting Cycle
In this short paper, you will evaluate the importance of the accounting cycle by illustrating the products of that cycle and identifying the potential for problems if it is not properly followed. Use the
Module Two Short Paper Template Word Documentas you work on this short paper.
To complete this assignment, review the
Module Two Short Paper Guidelines and Rubric PDFdocument.
ACC 201 Module Two Short Paper Guidelines and Rubric Overview: In this short paper, you will evaluate the importance of the accounting cycle by illustrating the products of that cycle and identifying the potential for problems if it is not properly followed. There is only one short paper assignment in this course, and it has a unique purpose: You can think of this exercise as establishing the conceptual framework for your remaining work in the problem sets and Final Project I. Essentially, in those activities, you will be engaging in the specific tasks of the accounting cycle and applying detailed processes on a practical level. Therefore, it is important to grasp the larger picture in this short paper so that you will be able to connect these smaller tasks and details and recognize their larger significance. Prompt: In a well-crafted short paper, respond to the following questions: What are the steps of the accounting cycle? Describe each in your own words using specific examples. What are the outputs of the accounting cycle? Why are they important? Identify and explain the purpose of each financial statement, including how they are interrelated. Why is the accounting cycle important to a business? Evaluate the significance of the accounting cycle in terms of its practical relevance for businesses. In your response, be sure to give specific examples of why certain steps are necessary. Address at least three different steps in your evaluation. Rubric Guidelines for Submission: Your paper should follow the formatting guidelines in the Module Two Short Paper Template. It should be a 2- to 3-page Microsoft Word document with double spacing, 12-point Times New Roman font, one-inch margins, and references to the textbook content cited in APA format. Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value Steps Meets “Proficient” criteria and demonstrates keen insight into the sequence and interrelationships between the steps of the accounting cycle Describes each of the steps of the accounting cycle in own words using specific examples Describes the steps of the accounting cycle, but fails to fully or accurately identify each using own words and specific illustrating examples Does not describe the steps of the accounting cycle 30 Outputs Meets “Proficient” criteria and demonstrates nuanced understanding of the products of the accounting cycle Identifies and explains the purpose of each financial statement created by the accounting cycle, including their interrelationships Identifies the purpose of each financial statement created by the accounting cycle, but fails to fully or accurately explain each, including their interrelationships Does not identify the purpose of each of the financial statements created by the accounting cycle 30 Significance “Meets Proficient” criteria and demonstrates deep appreciations of the significance of the accounting cycle Evaluates the significance of the accounting cycle for businesses, including at least three specific examples of why certain steps are necessary Evaluates the significance of the accounting cycle for businesses, but fails to fully or accurately cite specific examples of why certain steps are necessary Does not evaluate the significance of the accounting cycle for businesses 30 https://learn.snhu.edu/d2l/lor/viewer/view.d2l?ou=6606&loIdentId=15077 Articulation of Response Submission is free of errors related to citations, grammar, spelling, syntax, and organization and is presented in a professional and easy-to-read format Submission has no major errors related to citations, grammar, spelling, syntax, or organization Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas 10 Total 100% Running head: ACC 201 MODULE TWO SHORT PAPER1 ACC 201 Module Two Short Paper2 (This entire first page can be deleted after you review the guidelines. Your paper should begin with the title page that follows.) Review the Module Two Short Paper Guidelines and Rubric document to see how your paper will be scored. Be sure to follow APA format when providing references. If you have questions on APA formatting, you can check the Purdue OWL website or seek help from the SNHU Writing Lab. Notes on APA in a Formal Assignment · Use one-inch margins on all sides. · Use 12-point Times New Roman font with double spacing. · Paragraphs should be at least three to four sentences in length. · Delete the headings for “Introduction” and “Conclusion” in the template. These headings are included below to help you lay out your paper. APA format assumes that the introduction begins the paper, the body continues the paper, and the conclusion wraps up the paper, so those headings are not needed. · Indent the first line of every paragraph by 0.5”. · Be careful not to use personal pronouns such as “I.” · Make sure to delete headings such as Paragraph One, Paragraph Two, and so on. · Be sure to replace all of the guidelines text in brackets with your own writing. ACC 201 Module Two Short Paper: The Accounting Cycle [Your Name] Southern New Hampshire University Introduction (delete this heading in your final paper) [In your opening paragraph, very briefly introduce the purpose of your paper. Recall that you will be discussing the accounting cycle in keeping with the key terms of steps, outputs, and importance, as explained in your rubric instructions. Three or four sentences will be sufficient.] Paragraph One (delete this heading in your final paper) [Using your textbook and other provided course resources, identify the steps of the accounting cycle. Provide a description of each step in your own words, using specific examples.] Paragraph Two (delete this heading in your final paper) [Identify and describe the major products of the accounting cycle. Why are they important? Explain the purpose of each financial statement, including how they are interrelated. A minimum of five to six sentences is required to support your thoughts. Be specific in your answer and use examples to support your thoughts.] Paragraph Three (delete this heading in your final paper) [Defend the importance of the accounting cycle to a business. Specifically, Discuss why specific steps are necessary. Include in your discussion at least three different steps. A minimum of five to six sentences is required to support your thoughts. Focus your thoughts on the role of each step, as discussed in the second paragraph, and what each step contributes to the overall accounting process.] Conclusion (delete this heading in your final paper) [The conclusion reminds the reader what your paper is about and allows you to make a final point without introducing new information. Three or four sentences will be sufficient.] Reference Warren, C.S., Reeve, J. M., & Duchac, J. (2017). Corporate financial accounting (14th ed.). Boston, MA: Cengage Learning. [Make sure that you provide appropriate in-text citations in APA style, with the author’s name and year of publication (author last name, year). The textbook citation above is provided as an example of a References page citation, and it should be kept in the references section your paper. Feel free to add other resources. To add credibility to your paper, remember to cite ALL of the sources within the body of the paper, as well as in the References page at the end. References should be in alphabetical order by the author’s last name.] Chapter Introduction Chapter 1 Chapter 2 Chapter 3 Chapter 4 Zynga © Jahi Chikwendiu/The Washington Post/Getty Images Zynga is a leading provider of social games with more than 240 million active players per month. Zynga's games, such as CastleVille Legends, FarmVille, Mafia Wars, and Words With Friends, can be played on a variety of platforms including Facebook, Google Android, and Apple IOS. Zynga was founded in 2007 and is named after CEO (Chief Executive Officer) Mark Pincus's dog. Zinga is an American Bulldog who is known for her human-like qualities, which include sitting on chairs and eating at the dinner table. Because she is playful, loyal, and lovable, Zinga is considered the guiding spirit of the company. In developing its games, Zynga goes through a game development cycle that starts with the initial gaming concept, program development, and ends with testing and debugging errors. Businesses also go through a cycle of accounting activities that begins with recording transactions and ends with preparing financial statements and getting the accounting records ready for recording the next period's transactions. In Chapter 1, the initial accounting cycle for NetSolutions began with Chris Clark's investment in the business on November 1, 2017. The cycle continued with recording NetSolutions' transactions for November and December, as we discussed and illustrated in Chapters 1 and 2. In Chapter 3, the cycle continued when the adjusting entries for the two months ending December 31, 2017, were recorded. In this chapter, the cycle is completed for NetSolutions by preparing financial statements and getting the accounts ready for recording transactions of the next period. Source: Zynga.com What's Covered Completing the Accounting Cycle Preparing Classified Financial Statements Closing the Accounts The Accounting Cycle Reporting Using a Fiscal Year · Flow of Accounting Information (Obj. 1) · Income Statement (Obj. 2) · Retained Earnings Statement (Obj. 2) · Balance Sheet (Obj. 2) · Closing Entries (Obj. 3) · Post-Closing Trial Balance (Obj. 3) · Summary (Obj. 4) · Illustration (Obj. 5) · Calendar Year (Obj. 6) · Natural Business Year (Obj. 6) Learning Objectives · Obj. 1 · Describe the flow of accounting information from the unadjusted trial balance into the adjusted trial balance and financial statements. · Obj. 2 · Prepare financial statements from adjusted account balances. · Obj. 3 · Prepare closing entries. · Obj. 4 · Describe the accounting cycle. · Obj. 5 · Illustrate the accounting cycle for one period. · Obj. 6 · Explain what is meant by the fiscal year and the natural business year. Analysis for Decision Making Describe and illustrate the use of working capital and the current ratio in evaluating a company's financial condition. 4-1 Flow of Accounting Information Objective 1 The process of adjusting the accounts and preparing financial statements is one of the most important in accounting. Using the NetSolutions illustration from Chapters 1, 2, and 3 and an end-of-period spreadsheet, the flow of accounting data in adjusting accounts and preparing financial statements are summarized in Exhibit 1. The end-of-period spreadsheet