A prior period adjustment relates to the income of pastaccounting periods. Explain how such an item is shown inthe financial statements.

Q: What is the annual report, and what two types of information doesit present?

A: Annual report is the report of a company’s performance to its stake holders.

Q: Horizontal analysis is a technique for evaluating financial statement data a. for one period of time…

A: Horizontal analysis: The comparison of an item of a financial statement of one year against the same…

Q: If prepaid expenses are initially recorded in an expense account what adjusting entry should be made…

A: Adjusting entries:   Adjusting entries refers to the entries that are made at the end of an…

Q: Which of the following will be included in the adjusting entry to accrue interest * ?income or…

A: Accrue interest income is the interest earned but not received.

Q: Calculate the adjusted net income

A: Adjusted net income of the business shows all incomes and all expenses of the business and at the…

Q: It is added to income received to determine the total income for the year that is recorded under the…

A: Net income: It can be defined as the excess of a company's sales revenue over the expenses incurred…

Q: Prepare the following i. The income & expenditure account for the financial period

A: Income and expenditure is similar to P & L A/C of trading /business entities.it is used by non-…

Q: Why does the recording of adjusting entries require a bet-ter understanding of the concepts of…

A: Routine revenue and expense transactions are transactions of normal sales, purchases or occurrence…

Q: REQUIRED: PREPARE A STATEMENT OF COMPREHENSIVE INCOME IN A PRESCRIBED FORMAT FOR THE YEAR USING THE…

A: An income statement is one of the financial statements that shows the financial position of the…

Q: What do you understand by deferrals and accruals in adjusting entries? Give numerical examples on…

A: Lets understand the basics. Adjusting entry is passed to record the correct amount of revenue and…

Q: Generally accepted methods of accounting for a change in accounting principle include restating…

A: Whenever a company is opts for a new accounting principle in its current financial statements. The…

Q: Adjusting entries are made to ensure that:

A: Adjusting entries are made inorder to comply with accrual basis of accounting  Under Accrual basis…

Q: Determine the net income (loss) for the period.

A: Adjusted trial balance:  Adjusted trial balance is summary documents from all the ledger balances…

Q: Classify the following adjusting entries as involving prepaid expenses (PE), unearned revenues…

A: Accounting adjustments: Accounting adjustments can be called as the crucial step towards presenting…

Q: a) Adjusting entries to convert the records to accrual basis of accounting

A: Hey there since you have posted multiple questions, we can answer only first question, please…

Q: nual reports and why ar

A: To explain the items of annual report as,

Q: Provide an example of an accrued revenue. Describe the adjusting entry associated with an accrued…

A: Accrued revenue: It can be defined as the revenue that has been earned by the company against the…

Q: Classify the following adjusting entries as involving prepaid expenses (PE), unearned revenues…

A:

Q: In accordance with U.S. generally accepted accounting principles, which translation combination is…

A: If the U.S dollar is the functional currency of the subsidiary company then the temporal method as…

Q: true or false? Gains and losses are allocated over the interim period in the preparation of interim…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: Does every adjusting entry affect net income for a period? Explain.

A: Net income: Net income is the excess amount of revenue which is arises after deducting all the…

Q: If during an accounting period an expense item has been incurred and consumed but not yet pair or…

A: Adjusting entries are made at the end of the period in order to correct the transactions which has…

Q: Which of the following journals would correctly post an adjustment for deferred (prepaid) income?…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: Which of the following appears in the balance sheet accounts section of a pre-adjustment trial…

A: Pre adjustment trial balance is the summary of all general ledger account balances in the business…

Q: Indicate how prior period adjustments should be reported on the financial statements presented only…

A: Prior Period Adjustments Prior period adjustments refer to the error that is caused due to any…

Q: Prepare adjusting entries for deferral of revenues.

A: All expenses and incomes connected to the specific financial year, whether incurred or not, and…

Q: Explain how adjustments affect financial results.

A: Accounting systems are designed to record most recurring daily transactions, particularly any…

Q: What is the impact of accrued expenses before year end adjusting entries ? The answer is .A.…

A: Accrued expenses are those expenses which are recoginzed on the financial statements of the company…

Q: A comparison of the amounts for the same item in financial statements of two or more periods is…

A: Horizontal analysis of financial statements: In the horizontal analysis of financial statements, the…

Q: What adjusting entries would you pass in respect of income received in advance, outstanding…

A: Adjusting Entries:- Adjusting Entries referred as those entries, that are occurred at the end of…

Q: ous period’s financial statements are called?

A: It is common to occur errors in the financial statements, but whenever it is found that errors have…

Q: The effect of a revision of an accounting estimate must be recognised in profit and loss in which…

A: The estimate is based upon the opinion of one person that can vary in upcoming periods.

Q: 1.Which of the following would be the correct adjustment if there was an increase in an accrual?…

A: Answer: 1 Option (c) The amount of the increase is included as an expense (a debit) on the income…

Q: Do adjusting entries affect income statement accounts, bal-ance sheet accounts, or both? Explain.

A:

Q: If a payment of a deferred expense was recorded under the alternative treatment, what account would…

A: Deferred expense:   Advance payment for future expenses is called as prepaid expenses. These prepaid…

Q: Explain an example to record the adjusting entry for accrued revenue.

A: Adjusting Entry: An adjusting entry is a journal entry passed at the end of a financial period to…

Q: Calculate the first year's net income under the accrual basis of accounting.

A: In accrual basis of accounting, the revenue earned and expenses incurred in current period would be…

Q: "Accrued interest income" would normally appear in the financial statement under * Current assets…

A: Following is the answer to given question

Q: Revenue or expenditure is recognized for every adjustment entry.

A: This question deals with revenue or expenditure is recognized for every adjustment entry.

Q: What is the period of time covered by the income statement?

A: Answer:; Income statement is made for the period of one year and it is stated as for the year ended…

Q: Reversing entries are used in income collected in advance when the adjusting entry has a Debit to an…

A: Income has not yet been earned, it has to be Advance.  Then, here is the journal entry…

Q: What are accrual adjusting entries?

A: Accrual accounting: The method of accounting which recognizes revenues before they are received, and…

Q: Generally accepted methods of accounting for a change in accounting principle include O including…

A: Generally accepted methods of accounting for a change in accounting principle include "Restating…