describe the need for accruals and other adjustments in preparing fi nancial statements

Q: Define Expenses

A: Expenses are the cost that is incurred by the firm or the company to run the business. Basically,…

Q: Describe stakeholder orientation at REI.

A: Introduction: A stakeholder is a person that has an interest in a company and has the ability to…

Q: Which type of plan is used to manage an event that has reoccurrence? a. Rules b. Single Use Plan c.…

A: There are various types of plans which are prepared by business organization so that decisions can…

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: The term Journalizing is related to which of the following? O a. Reporting O b. Identifying and…

A: The term "Journalizing" is the main process that is involved in recording a business transaction in…

Q: Which type of report would you prepare when engaged to prepare forecasted statements?

A: Forecasted statements refers to the statements or reports that estimate the expected future income…

Q: How are beginning balances audited?

A: Audit: Audit is the process of verification of the compliance of the financial statements.…

Q: Provide your opinion with explanation on the issue of COVID-19 should be accounted for as an…

A: Adjusting events constitute significant occurrences or modifications that occur between the close of…

Q: Explain what is meant by ‘events occurring after reporting date’. Distinguish between events that…

A: "Event occurring after reporting date" is meant for those events that occur between the end of the…

Q: Why are adjusting entries and note disclosures labeled “proposed”?

A: Adjustment Entries: The entries are generally recorded prior to preparation of financial statements…

Q: What are the methods of preparing trial balance?

A: Trial balance is the workbook that maintains all balances of ledgers in a particular period.  It is…

Q: how do you do an adjusted trial balance sheet to it?

A: Adjusted Trial Balance - Adjusted Trial Balance is a Summary of all the ledgers after posting…

Q: What is the importance of date of declaration, date of record, and date of payment?

A: Following are the importance of declaration date, record date and payment date in accordance with…

Q: What are scheduled, interim, and past due statements? Please explain.

A: Financial statements are documents that detail a company's operations and cash flows results. . The…

Q: Ethics of accruals and deferrals.

A: Lets understand the meaning of accrual and deferrals. Accrual is a recording income and expense in…

Q: Briefly explain the purposes of adjustments.

A: Adjustments (Adjusting entries) : These are made to record the business transactions that has been…

Q: Understand the disclosures required for revenue recognition, accounts receivable,contract assets,…

A: Much disclosure is required for revenue recognition. For example, a seller recognises contract…

Q: Summarize the adjusting process.

A:

Q: Explain what accruals and deferrals do and give examples of each.

A:

Q: Discuss the methods of preparation  and the utility of a Trial balance

A: Trial balance: Trial balance is a summary of all the ledger account balances presented in a tabular…

Q: Define Adjustments

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: Describe the purpose of adjusting entries.

A: Adjusting entries: Adjusting entries are the journal entries, which are recorded at the end of the…

Q: How do I word the data for adjustments in the trial balance?

A: Trial balance:   It is a statement that shows the balance of balances. It is prepared at the end of…

Q: Correcting a prior period entry requires a prior period adjustment to what account?

A: Prior period adjustment entry is an entry recorded in the current year to modify or correct an entry…