Companies make adjusting entries at the end of an accounting period. These entries ensure that companies record revenues in the period in which they are earned and that companies recognize expenses in the period in which they are incurred. Adjusting entriescan be classified as either deferralsor accruals. Each of these classes has two subcategories.
1. Identify the subcategories for each
2. Provide an example of an account for each.
In order to be successful in accounting, and to properly complete the course assignments, it is very important to understand and be able to follow the accounting cycle (or recording process).
3. Explain the accounting cycle (or recording process).
4. Identify and briefly describe each of the nine steps involved in the accounting cycle?
5. Watch the YouTube video and explain how to perform adjusting entries? (https://www.youtube.com/watch?v=LObZBMZ8vlw)
6. Watch the YouTube video and explain Preparing Financial Statements (https://www.youtube.com/watch?v=Q0pYOrgULdQ&list=PLQM8Yz-YfruS33IfebaIsTSZPt2qbAda4&index=4)
