tailieunhanh - Lecture Financial accounting (3/e): Chapter 3 - Spiceland, Thomas, Herrmann

Chapter 3 - The accounting cycle: Eend of the period. After studying this chapter, you should be able to: Understand when revenues and expenses are recorded, distinguish between accrual-basis and cash-basis accounting, demonstrate the purposes and recording of adjusting entries, post adjusting entries and prepare an adjusted trial balance. | The Accounting Cycle: End of the Period Chapter 3 1 Learning Objectives Understand when revenues and expenses are recorded Distinguish between accrual-basis and cash-basis accounting Demonstrate the purposes and recording of adjusting entries Post adjusting entries and prepare an adjusted trial balance Learning Objectives Prepare financial statements using the adjusted trial balance Demonstrate the purposes and recording of closing entries Post closing entries and prepare a post-closing trial balance Part A Accrual-Basis Accounting 3-4 Net income is an essential aspect of good investment decisions. Investors know that any information they gather to help in predicting net income will lead to more profitable investments. Proper computation of net income requires considerable attention to be paid to the proper measurement of the two primary components of net income – revenues and expenses. In this section, we look at important principles behind reporting of revenues and expenses and at their effect on accounting. 4 Learning Objective 1 Understand when revenues and expenses are recorded 3-5 Revenue and Expense Reporting Revenue recognition Recognize revenue when it is earned Expense recognition Expenses are reported with the revenues they help to generate Revenue recognition principle Matching principle A company records revenues when it sells its product or provides its service to a customer. For example, revenues are recorded when FedEx delivers a package, Reebok sells a pair of shoes, AMC Theatres sells a movie ticket, American Eagle sells a shirt, or GEICO provides insurance coverage. The revenue recognition principle states that we should recognize revenue in the period in which we earn it, not necessarily in the period in which we receive cash. The matching principle recognize expenses in the same period as the revenues they help to generate. There is a cause-and-effect relationship between revenue and expense recognition implicit in this principle. 6 Learning . | The Accounting Cycle: End of the Period Chapter 3 1 Learning Objectives Understand when revenues and expenses are recorded Distinguish between accrual-basis and cash-basis accounting Demonstrate the purposes and recording of adjusting entries Post adjusting entries and prepare an adjusted trial balance Learning Objectives Prepare financial statements using the adjusted trial balance Demonstrate the purposes and recording of closing entries Post closing entries and prepare a post-closing trial balance Part A Accrual-Basis Accounting 3-4 Net income is an essential aspect of good investment decisions. Investors know that any information they gather to help in predicting net income will lead to more profitable investments. Proper computation of net income requires considerable attention to be paid to the proper measurement of the two primary components of net income – revenues and expenses. In this section, we look at important principles behind reporting of revenues and expenses and at .

• Kế toán - Kiểm toán
• Financial accounting
• Lecture Financial accounting
• The accounting cycle
• Financial statement
• Revenue recognition
• Adjusting entries
• Issues in financial accounting
• Kế toán tài chính
• Financial statements
• Accounting standards
• Financial reporting
• Financial Accounting Standards Board
• Fundamental financial accounting
• Lecture Fundamental financial accounting concepts
• Accounting cycle
• Accounting for accruals
• Accounting system
• Accounting activities
• Financial accounting practice
• Accounting information system
• Accounting terminology
• Reporting financial results
• Evaluating liquidity
• Business firms
• The financial reporting reform
• Accounting information
• Management accounting
• Accounting equation
• Accounting systems
• Decision making
• External financial reporting
• Accounting for business
• Lecture Accounting for business
• Financial accounting reports
• Statement of financial performance
• Accrual accounting systems
• Statement of financial position
• Mastering financial accounting essentials
• Financial accounting essentials
• Accrual accounting
• Income statement
• Accounting conventions
• Internal control
• Accounting for cash
• Accounting for receivables
• Computing uncollectible accounts expense
• Long term debt
• Accounting for long term debt
• Paper F3
• Revision kit 2016
• Accounting Financial
• Accounting Financial Review
• Financial Review accounting exam
• Study text 2016
• Language of business
• Double entry accounting system
• Credit terminology
• Merchandising businesses
• Accounting for merchandising businesses
• Accounting for inventories
• Cash discounts
• International financial reporting standards
• Completing the accounting cycle
• Accounting worksheet
• Classified balance sheet