100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Summary Ch 3 Adjusting the Accounts - Financial Accounting with International Financial Reporting Standards - FAC2 CA$10.00
Add to cart
Quickly navigate to
Preview
  2.  
  3. Hanzehogeschool Groningen (Hanze)
  4.  
  5. FAC2

Summary

Summary Ch 3 Adjusting the Accounts - Financial Accounting with International Financial Reporting Standards - FAC2
 15 views  0 purchase
  • Course
  • FAC2
  • Institution
  • Hanzehogeschool Groningen (Hanze)
  • Book
  • Financial Accounting with International Financial Reporting Standards

Provides in-depth summary of chapter 3. topics include Accrual-Basis Accounting and Adjusting Entries, Prepaid Expenses, Unearned Revenues, Accrued Revenues, Accrued Expenses

Preview 2 out of 11  pages

Document information

  • No
  • Unknown
  • February 12, 2024
  • 11
  • 2023/2024
  • Summary

Subjects

  • adjusting accounts
  • prepaid expenses
  • unearned revenues
  • accrued revenues
  • accrued expenses

Connected book

book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:

More summaries for

  • FAC2601 Assignment 4 Semester 2 2024
  • FAC2601 Assessment 3 Semester 2 2024
  • Accounting Categories (Debit and Credit Balances) - Financial Accounting (FAC)
All for this textbook (33)

Written for

  • Hanzehogeschool Groningen (Hanze)
  • International Business and Management Studies
  • FAC2
All documents for this subject (13)

Seller

avatar-seller
amy5430

Reviews received

Content preview

Adjusting the Accounts
Chapter Number Chapter 3



📖 Table of Contents

Outline
3.1 Accrual-Basis Accounting and Adjusting Entries
Recognizing Revenues and Expenses
Revenue Recognition Principle
Expense Recognition Principle
Types of Adjusting Entries
3.2 Adjusting Entries for Deferrals
Prepaid Expenses (A)
Adjustment for Supplies
Adjustment for Insurance
Adjustment for Depreciation
Unearned Revenues (L)
Service revenue accounts after adjustment
3.3 Adjusting Entries for Accruals
Accrued Revenues (A)
Adjustment for accrued revenue
Accrued Expenses (Current Liability)
Accrued Interest
Accrued Salaries and Wages




Adjusting the Accounts 1

, 3.1 Accrual-Basis Accounting and
Adjusting Entries
Under the accrual basis, companies record transactions that change a company’s
financial statements in the periods in which the events occur.
For example, using the accrual basis to determine net income means companies
recognize revenues when they perform services (rather than when they receive
cash). It also means recognizing expenses when incurred (rather than when paid).


Recognizing Revenues and Expenses
Revenue Recognition Principle
When a company agrees to perform a
service or sell a product to a customer, it has
a performance obligation. When the
company meets this performance obligation,
it recognizes revenue.
The revenue recognition principle
therefore requires that companies recognize
revenue in the accounting period in which
the performance obligation is satisfied.


Expense Recognition Principle
This practice of expense recognition is
referred to as the expense recognition
principle.
It requires that companies recognize
expenses in the period in which they make
efforts (consume assets or incur liabilities) to
generate revenue.




Types of Adjusting Entries


Adjusting the Accounts 2

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller amy5430. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$10.00. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

53068 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
CA$10.00
  • (0)
Add to cart
Added