Adjustments for Financial Reporting
Learn more about adjustments for financial accounting as well as cash basis and the accrual basis of accounting.
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This course begins by clearly discussing the adjustments for financial reporting. You will learn that financial reports are used to see how a business is performing and therefore should accurately reflect how the business performed during the period under review. You will look into the characteristics of cash basis versus accrual basis accounting as well as study the classes and types of adjusting entries. You will also learn why adjusting entries must be made.
You will then learn how to make adjustments for deferred items such as expenses and depreciation as well as for accrued items. You will study how depreciation is calculated and posted as well as look into the effect on financial reports when adjustment entries are not processed. You will learn that by adjusting entries, you can have a balance at the end of the fiscal period. This course will also discuss how and why trend percentages are used when analysing financial reports, and a whole lot more.
Adjusting entries are accounting journal entries that convert a company's accounting records to the accrual basis of accounting and is typically made prior to issuing a company's financial statements. Upon the completion of this course, you will have a better understanding of the accrual basis of an accounting system to accurately record the true revenues earned and costs paid for the period in question. Check out this course and enhance your accounting skills today!
Module 1: Adjustments for Financial Reporting
Course Prerequisites and Navigation
Cash versus Accrual Basis Accounting
Classes and Types of Adjusting Entries
Adjustments for Deferred Items - Expenses
Adjustments for Deferred Items - Depreciation
Adjustments for Accrued Items
Module 2: Adjustments for Financial Reporting Assessment
Having studied this course learners will be able to:
- Describe the basic characteristics of the cash basis and the accrual basis of accounting;
- Identify the reasons why adjusting entries must be made;
- Identify the classes and types of adjusting entries;
- Prepare adjusting entries;
- Understand how depreciation is calculated and posted;
- Understand the effect on financial reports when adjustment entries are not processed;
- Understand how and why trend percentages are used when analysing financial reports.
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