Accounting Cycle and Ratios Full Demo

This video covers the following learning objectives:

• Build a standardized chart of accounts with proper numbering and normal balances.

• Record core period transactions and year-end adjusting entries.

• Post to the General Ledger using SUMIFS for dynamic account totals.

• Prepare an Unadjusted Trial Balance; apply AJEs; produce an Adjusted Trial Balance.

• Assemble linked Income Statement, Balance Sheet, and Indirect Cash Flow Statement.

• Explain how non-cash items (e.g., depreciation) and working capital changes flow through the CFS.

• Define the role and categories of financial ratios (profitability, liquidity, efficiency, solvency).

• Build a Ratios tab in Excel linked to IS/BS (no hard-typed inputs).

• Calculate Net Margin, ROA, ROE, Current & Quick ratios, Asset & Receivables Turnover, Debt-to-Equity.

• Interpret ratios to evaluate performance and capital structure.

• Demonstrate how ratios update dynamically when upstream journal entries change.