Distinguish between altering and correcting entries. Adjusting entries are a
deliberate step in the accounting process that updates the accounts. Correcting
entries is not a deliberate process; rather, it occurs when errors must be
corrected.
Determine the types of accounts that influence deferrals and accruals, including
their classification and usual balances. - ANSWER Prepaid Expenses, Unearned
Revenues, Accrued Expenses
Identify the accounting technique required by GAAP. The accrual-based
accounting method.
Understand the many accounting concepts discussed in the literature. The
accounting period idea mandates that revenues and expenses be reported in the
appropriate time.
Revenue Recognition Concept- The accounting concept that allows businesses
to declare revenue as they give services to clients.
Matching Concept - An accounting concept in which expenses are matched to
revenue received over a certain period.
The steps of the accounting cycle are in the following order: - ANSWER 1.
Transactions are evaluated and documented in the journal.
2. Transactions are added to the ledger.
3. An unadjusted trial balance is generated.
4. Adjustment data is collected and examined.
5. An optional end-of-period spreadsheet is created.
deliberate step in the accounting process that updates the accounts. Correcting
entries is not a deliberate process; rather, it occurs when errors must be
corrected.
Determine the types of accounts that influence deferrals and accruals, including
their classification and usual balances. - ANSWER Prepaid Expenses, Unearned
Revenues, Accrued Expenses
Identify the accounting technique required by GAAP. The accrual-based
accounting method.
Understand the many accounting concepts discussed in the literature. The
accounting period idea mandates that revenues and expenses be reported in the
appropriate time.
Revenue Recognition Concept- The accounting concept that allows businesses
to declare revenue as they give services to clients.
Matching Concept - An accounting concept in which expenses are matched to
revenue received over a certain period.
The steps of the accounting cycle are in the following order: - ANSWER 1.
Transactions are evaluated and documented in the journal.
2. Transactions are added to the ledger.
3. An unadjusted trial balance is generated.
4. Adjustment data is collected and examined.
5. An optional end-of-period spreadsheet is created.
