MAA261 Lecture Notes - Lecture 3: Capital Account, Accounting Information System, Time Deposit

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1 Aug 2018
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Explain the accounting cycle and the need for end-of-accounting-period adjusting entries. Income is recorded when cash i received: expenses are recorded when cash is paid. Income recognised when the anticipated flow of economic benefit can be reliably measured: expenses recognised when the consumption of benefits can be reliably measured. Identify and prepare the different types of adjusting entries. Example: accrued revenue in market services (accounts recievable: on the 1st june an agreement was signed to provide marketing services for a monthly fee of. On 30th june cash is yet to be received and no invoice has been issued. Example: deferrals of prepaid rent: on the 1st june rent was paid 3 months in advance, on the 30th june one month of rent has expired, 1200/3 = . Income taxes: under the australian pay as you go (payg) withholding system of federal income taxes, employers are required to withhold income tax from employees each pay period.

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