tailieunhanh - Lecture Survey of Accounting (First edition): Chapter 4 – Kimmel, Weygandt

Chapter 4 - Accrual accounting concepts. After reading the material in this chapter, you should be able to: Explain the accrual basis of accounting and the reasons for adjustments, prepare adjustments for deferrals, prepare adjustments for accruals, prepare financial statements from adjusted amounts. | Accrual Accounting Concepts 4 Kimmel ● Weygandt Survey of Accounting, First Edition WILEY Prepare adjustments for deferrals. CHAPTER OUTLINE Explain the accrual basis of accounting and the reasons for adjustments. 1 2 LEARNING OBJECTIVES Prepare adjustments for accruals. 3 Prepare financial statements from adjusted amounts. 4 LEARNING OBJECTIVE Explain the accrual basis of accounting and the reasons for adjustments. 1 LO 1 Generally a month, a quarter, or a year. Fiscal year vs. calendar year. Accountants divide the economic life of a business into artificial time periods (Periodicity Assumption). Jan. Feb. Mar. Apr. Dec. . . . . . ▼ HELPFUL HINT An accounting time period that is one year long is called a fiscal year. Periodicity Assumption Review Question What is the periodicity assumption? Companies should recognize revenue in the accounting period in which it is earned. Companies should match expenses with revenues. The economic life of a business can be divided into artificial time periods. The fiscal year should correspond with the calendar year. LO 1 Companies recognize revenue in the accounting period in which the performance obligation is satisfied. REVENUE RECOGNITION PRINCIPLE LO 1 TEACHING TIP Service businesses recognize revenue when the services are performed, although many customers may have been billed for the services (on account). The cash has not been received; however, the services have been performed. Therefore, revenue should be recognized. Illustration: Assume Conrad Dry Cleaners cleans clothing on June 30 for $500, but customers do not claim and pay for their clothes until the first week of July. The effect on the accounting equation for the June and July transactions would be as follows. REVENUE RECOGNITION PRINCIPLE LO 1 “Let the expenses follow the revenues.” ILLUSTRATION 4-1 GAAP relationships in revenue and expense recognition EXPENSE RECOGNITION PRINCIPLE LO 1 ILLUSTRATION 4-1 GAAP relationships in revenue and expense recognition . | Accrual Accounting Concepts 4 Kimmel ● Weygandt Survey of Accounting, First Edition WILEY Prepare adjustments for deferrals. CHAPTER OUTLINE Explain the accrual basis of accounting and the reasons for adjustments. 1 2 LEARNING OBJECTIVES Prepare adjustments for accruals. 3 Prepare financial statements from adjusted amounts. 4 LEARNING OBJECTIVE Explain the accrual basis of accounting and the reasons for adjustments. 1 LO 1 Generally a month, a quarter, or a year. Fiscal year vs. calendar year. Accountants divide the economic life of a business into artificial time periods (Periodicity Assumption). Jan. Feb. Mar. Apr. Dec. . . . . . ▼ HELPFUL HINT An accounting time period that is one year long is called a fiscal year. Periodicity Assumption Review Question What is the periodicity assumption? Companies should recognize revenue in the accounting period in which it is earned. Companies should match expenses with revenues. The economic life of a business can be divided into artificial .

• Kế toán - Kiểm toán
• Survey of Accounting
• Lecture Survey of Accounting
• Financial statements
• Accrual accounting
• Revenue recognition
• Expense recognition
• Accounting for cash
• Accounting cycle
• Financial resources
• Accounting provides information
• Internal controls
• Accounting profession
• Accounting for receivables
• Inventory cost flow
• Accounting for liabilities
• Bonds issued
• Managerial accounting
• Product costing
• Ledger accounts
• Merchandising businesses
• Transportation costs
• Long term operational assets
• Depreciation method