Lesson 5 - Adjusting the Accounts.
Learning Goals: By the end of this lesson you will be able to
Accrual basis of accounting records revenues when earned and records expenses when incurred, regardless of when the cash is received or paid
Cash basis of accounting records revenues when cash is received and records expenses when cash is paid
Prepaid expenses are costs paid in cash and recorded as assets before they are used or consumed.
The carrying amount of an asset is calculated by subtracting the accumulated depreciation from the cost of the asset
Unearned revenues are revenues received in cash and recorded as liabilities before they are earned
Why Accural Accounting important?
practice questions
Suggested Questions:
E3-1 to E3-8, ,
P3-1A,P3-3A, P3-6A, P3-11A
Review - Self Study Questions
Brief Exercises - 3-2 to 3-5
3-7to 3-12
Ex 3-2 page 130