BU127 Chapter Notes - Chapter 4: Deferred Income, Financial Statement, Trial Balance
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BU127 Full Course Notes
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Document Summary
Managers are responsible for preparing financial statements which is useful to creditors an. Close revenues, gains, expenses, and losses to retained earnings. Deferred revenues- (l)- previously recorded liabilities that are recorded when cash was r. Accrued revenues- revenues that have been earned but not yet recorded because cash w. Deferred expenses- (a)- represent previously recorded assets, such as prepaid rent, suppl. Accrued expenses- represent expenses that were incurred but were not recorded becaus. Deferrals - cash has been exchanged in advance of the exchange of goods/service. before. Accruals- cash has not been exchanged yet but the goods have been exchanged. Accrual based accounting requires that all revenues be recorded when. Adjustments record the unrecorded revenues and expenses at end of p efficient to record at the end of the period. Reve hen earned in current period & expenses recorded when incurred of period.
