Need for adjusting entries, Accounting Basics

Assignment Help:

Q. Need for adjusting entries?

The income statement of business information all revenues earned and all expenses incurred to generate those revenues during a given period. An income statement that doesn't report all revenues and expenses is inaccurate, incomplete and possibly misleading. Likewise a balance sheet that doesn't report all of an entity's assets and liabilities and stockholders' equity at a specific time may be misleading. Every adjusting entry has a dual purpose to make the income statement reports the proper revenue or expense and to make the balance sheet report the proper asset or liability. Therefore every adjusting entry affects at least one income statement account and one balance sheet account.


Related Discussions:- Need for adjusting entries

Example of adjustments for accrued items, Q. Example of Adjustments for acc...

Q. Example of Adjustments for accrued items? For instance assume Micro Train Company has some money in a savings account. On 2010 December 31 the cash on deposit has earned one

Journal entry , Acquired a shop on monthly rent for Rs. 3,000 after paying ...

Acquired a shop on monthly rent for Rs. 3,000 after paying cash Rs. 36,000 as advance rent ??

Consistency principle, A company has been depreciating its IT equipment ove...

A company has been depreciating its IT equipment over 5 (five )years, but now finds that it is becoming obsolete in 3 years.   What does the consistency principle allow the comp

#title.blessing., Implication of applying accounting concept wrongly

Implication of applying accounting concept wrongly

Most suitable method of controlling stock in a hotel bar, "Periodic Review"...

"Periodic Review" is the suitable method of controlling stock in hotel bar.

What does the 2011, At December 31, 2011 and 2010, Miley Corp. had 180,000 ...

At December 31, 2011 and 2010, Miley Corp. had 180,000 shares of common stock and 10,000 shares of 5%, $100 par value cumulative preferred stock outstanding. No dividends were decl

What is reconciliation?, You should have recorded in your cash books all am...

You should have recorded in your cash books all amounts you've really received and payments you've really made. Though the cash books may be incomplete as your bank may have put ex

Inter company transaction in account receivable, How to define Inter compan...

How to define Inter company Transaction in Account Receivable? Ans) Intercompany transactions are those transactions that takes place among two or more entities of the similar g

Principle of accounting I, the terms debit and credit are synonymous with l...

the terms debit and credit are synonymous with left and right.

Requirements for accounting standards, The information contained in publish...

The information contained in published financial statements is of specific importance to external users, as shareholders and investors. Without any information they would not be ca

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd