TAILIEUCHUNG - Lecture Principles of financial accouting - Chapter 3: Adjusting accounts and preparing financial statements

After completing this chapter you should be able to: Explain the importance of periodic reporting and the time period assumption, explain accrual accounting and how it improves financial statements, identify the types of adjustments and their purpose. | Chapter 3 Adjusting Accounts and Preparing Financial Statements Chapter 3: Adjusting Accounts and Preparing Financial Statements The Accounting Period C 1 To provide timely information, accounting systems prepare reports at regular intervals. This results in an accounting process impacted by the time period (or periodicity) assumption. The time period assumption presumes that an organization’s activities can be divided into specific time periods such as a month, a three-month quarter, a six-month interval, or a year. Most organizations use a year as their primary accounting period. Many organizations also prepare interim financial statements covering one, three, or six months of activity. When we divide business activities into arbitrary fixed periods of time, it is often necessary to have special accounting for transactions that cross from one time period to the next. Most of our time will be spent looking at the special adjusting process for some of these transactions. Accrual Basis

• Tài chính doanh nghiệp
• Accounting principles
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Adjusting accounts
• Preparing financial statements
• Adjusting accounts
• Accounting information systems
• Fundamental system principles
• Technology based accounting systems
• Accounting information
• Financial accounting
• Managerial accounting
• Managerial cost
• Reporting manufacturing activities
• Merchandising operations
• Accounting cycle
• Completing the accounting cycle
• Classified balance sheet
• Accounting for partnerships
• Partnership form of organization
• Basic partnership accounting