Accounting & Finance Courses

Adjusting Accounts & Preparing Financial Statements


Description
Adjusting entries reflect unrecorded economic activity that has taken place but has not yet been recorded because it is either more convenient to wait until the end of the period to record the activity, or because no source document concerning that activity has yet come to the accountant’s attention.

Additionally, periodic reporting and the matching principle necessitate the preparation of adjusting entries. Remember, the matching principle indicates that expenses have to be matched with revenues as long as it is reasonable to do so.

To follow this principle, adjusting entries are journal entries made at the end of an accounting period or at any time financial statements are to be prepared to bring about a proper matching of revenues and expenses.

After the adjusted trial balance, we prepare the financial statements. The financial statements are how a business communicates or publishes its story.

This course will discuss in details adjusting accounts and preparing financial statements.
Content
  • 1. Compound Growth: Definition & Formula
  • 2 Principal Amount Definition _ Formula
Completion rules
  • All units must be completed
  • Leads to a certification with a duration: Forever