Week Four — DQ 1 due Day 2 (Tuesday)
The Accounting Cycle
- Describe the required steps in the accounting cycle. Be sure to incorporate the accounting equation and how debits and credits work in your discussion.
Week Four — DQ 2 due Day 4 (Tuesday)
Year-End Closing Entries
- Describe the nature and purpose of the adjusted trial balance.
- Explain the purpose of closing entries. Is there any difference in how closing entries are recorded as compared with recording daily transactions and adjusting entries Why or why not?
GIVE ANSWER IN AT LIST 100 – 150 words to each
c04AccrualAccountingConcepts.qxd 8/3/10 1:50 PM Page 162 chapter 4 ACCRUAL ACCOUNTING CONCEPTS ? the navigator ? ? Scan Study Objectives study objectives ? Read Feature Story After studying this chapter, you should be able to: ? Scan Preview 1 Explain the revenue recognition principle and the expense ? Read Text and Answer Do it! recognition principle. p. 175 p. 180 p. 185 p. 189 2 Differentiate between the cash basis and the accrual basis of ? Work Using the Decision Toolkit accounting. ? Review Summary of Study Objectives 3 Explain why adjusting entries are needed, and identify the major types of adjusting entries. ? Work Comprehensive Do it! p. 197 4 Prepare adjusting entries for deferrals. ? Answer Self-Test Questions 5 Prepare adjusting entries for accruals. ? Complete Assignments 6 Describe the nature and purpose of the adjusted trial balance. ? Go to WileyPLUS for practice and tutorials 7 Explain the purpose of closing entries. ? Read A Look at IFRS p. 224 8 Describe the required steps in the accounting cycle. 9 Understand the causes of differences between net income and cash provided by operating activities. 162c04AccrualAccountingConcepts.qxd 8/3/10 1:50 PM Page 163 feature story The accuracy of the financial reporting system de- most common abuses of financial accounting. Xerox pends on answers to a few fundamental questions. At admitted reporting billions of dollars of lease revenue what point has revenue been earned? At what point in periods earlier than it should have been reported. is the earnings process complete? When have ex- And WorldCom stunned the financial markets with its penses really been incurred? admission that it had boosted net income by billions During the 1990s, the stock prices of dot-com com- of dollars by delaying the recognition of expenses un- panies boomed. Many dot-com companies earned most til later years. of their revenue from selling advertising Unfortunately, revelations such as space on their websites. To boost re-…
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accounting_6e….pdf