ACCT 2001 Study Guide - Midterm Guide: Retained Earnings, Financial Statement, Accrual
Document Summary
Chapter 4: accrual accounting concepts (note: this worksheet is intended as an optional study guide. Expense recognition principle: differentiate between accrual-basis accounting and cash-basis accounting: Accrual-basis accounting: transactions recorded in the periods in which the events _________, revenues are recognized when ___________, even if cash was not received, expenses are recognized when _____________, even if cash was not paid. Cash-basis accounting: revenues are recognized only when cash is ____________________, expenses are recognized only when cash is ____________________, _________________ under generally accepted accounting principles. Lo 3: why are adjusting entries needed, make it possible to report correct amounts on the balance sheet and income statement, a company makes adjusting entries every time it prepares _________________ Includes one _______________ account and one ________________ account: needed to ensure that the ______________________ and. _____________________ principles are followed: types of adjusting entries. Prepaid expenses: unearned revenues, accruals, accrued revenues, accrued expenses, what is a deferral, define the following:
