BUSACC 0030 Lecture Notes - Lecture 4: Trial Balance, Income Statement, Current Liability
Document Summary
Material covered: chapter 4: adjustments, financial statements, and the quality of earnings. Next week is the first test on chapters 1-4. There is a study guide posted on courseweb. Understanding the business: management is responsible for preparing financial statements high quality = relevance + reliability useful to investors and creditors, accounting cycle b. i. Post transactions from journal to general ledger b. iv. Prepare a trial balance (debits = credits) b. v. record, adjust revenues and expenses b. vi. Four types of adjustments: adjusting entries that increase revenues a. i. Previously recorded liabilities that were created when cash was received in advance, and that must be reduced for the amount of revenue actually earned during the period a. ii. Revenues that have been earned byt not yet recorded vecause cash will be received after the services are performed of goods are delivered: adjusting entries that increase expenses b. i.
