Adjusting Entries in Accounting Online Course | Alison
Loading

The New Alison App has just launched Download Now

Adjustments for Financial Reporting

Learn more about adjustments for financial accounting as well as cash basis and the accrual basis of accounting.

Accounting
Free Course
This free online accounting course will teach you how to determine if an account needs adjustment entries with the matching principle concept. In this course you will study the two classes and four types of adjustments resulting from unearned revenue, prepaid expenses, accrued expenses, and accrued revenue along with sample adjustments. You will learn about depreciation and the significant effect it can have on the balance sheet.

Description

Modules

Outcome

Certification

View course modules

Description

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!

Start Course Now

Learning Outcomes

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.

Certification

All Alison courses are free to enrol, study and complete. To successfully complete this Certificate course and become an Alison Graduate, you need to achieve 80% or higher in each course assessment. Once you have completed this Certificate course, you have the option to acquire an official Certificate, which is a great way to share your achievement with the world. Your Alison Certificate is:

Ideal for sharing with potential employers - include it in your CV, professional social media profiles and job applications
An indication of your commitment to continuously learn, upskill and achieve high results
An incentive for you to continue empowering yourself through lifelong learning

Alison offers 3 types of Certificates for completed Certificate courses:

Digital Certificate - a downloadable Certificate in PDF format, immediately available to you when you complete your purchase
Certificate - a physical version of your officially branded and security-marked Certificate, posted to you with FREE shipping
Framed Certificate - a physical version of your officially branded and security-marked Certificate in a stylish frame, posted to you with FREE shipping

All Certificates are available to purchase through the Alison Shop. For more information on purchasing Alison Certificates, please visit our FAQs. If you decide not to purchase your Alison Certificate, you can still demonstrate your achievement by sharing your Learner Record or Learner Achievement Verification, both of which are accessible from your Dashboard. For more details on our Certificate pricing, please visit our Pricing Page.

Careers

    Notification

    You have received a new notification

    Click here to view them all