Accrual Accounting and Financial Statement Analysis — Adjusting Entries, Closing the Books, and Key Ratios | Chapter 3 of Financial Accounting
Accrual Accounting and Financial Statement Analysis — Adjusting Entries, Closing the Books, and Key Ratios | Chapter 3 of Financial Accounting Chapter 3 of Financial Accounting (12th Edition) by Thomas, Tietz, and Harrison is where students complete the accounting cycle. This pivotal chapter introduces the key concepts of accrual accounting, financial statement preparation, and financial performance analysis. Through adjusting entries, closing procedures, and ratio analysis, it teaches how to transform raw data into accurate, actionable financial reports. 📺 Watch the full chapter summary above for a podcast-style breakdown of the accrual method, adjustments, and essential financial ratios. Subscribe to the Last Minute Lecture channel for weekly textbook walkthroughs. 📘 Book Overview This chapter clarifies the difference between accrual accounting and cash-basis accounting . Accrual accounting, the standard under GAAP, recognizes revenues and expenses when they’re earn...