Lecture "International accounting - Chapter 2: The adjusting process" has content: Accrual accounting versus cash basis, accounting, other accounting principles, why we adjust the accounts, two categories of adjusting entries, the adjusted trial balance, the financial statements, ethical issues in accrual accounting | International Accounting Chapter 2: The Adjusting process Chapter 2: The adjusting process MA. Nguyen Quoc Nhat 1 Accounting cycle 2 Quick check- overview chapter 1 What is the accounting term of these definitions? 1. A list of all a company’s accounts with their account numbers. 2. A system of accounting where every transaction affects at least two accounts. 3. Summary device that is shaped like a capital “T” with debits posted on the left side of the vertical line and credits on the right side of the vertical line. A “shorthand” version of a ledger. 4. A list of all the ledger accounts with their balances at a point in time. 3 MA. Nguyen Quoc Nhat – 1 International Accounting Chapter 2: The Adjusting process Quick check- overview chapter 1 Answer: 1. A list of all a company’s accounts with their account numbers. Chart of accounts 2. A system of accounting where every transaction affects at least two accounts. Double – entry system 3. Summary device that is shaped like a capital “T” with debits posted on the left side of the vertical line and credits on the right side of the vertical line. A “shorthand” version of a ledger. T - account 4. A list of all the ledger accounts with their balances at a point in time. The trial balance 4 Learning objective Differentiate between accrual and cash-basis accounting. Define and apply the accounting period concept, revenue recognition and matching principles, and time period concept. Explain why adjusting entries are needed Journalize and post adjusting entries Explain the purpose of and prepare an adjusted trial balance Prepare the financial statements from the adjusted trial balance 5 Chapter’s contents Accrual Accounting Versus Cash-Basis Accounting Other Accounting Principles Why We Adjust the Accounts Two Categories of Adjusting Entries The Adjusted Trial Balance The Financial Statements Ethical Issues in Accrual Accounting 6 MA. Nguyen
