财务会计ch03.ppt
《财务会计ch03.ppt》由会员分享,可在线阅读,更多相关《财务会计ch03.ppt(49页珍藏版)》请在课桌文档上搜索。
1、2023/4/13,财务会计,财务会计,财务会计,CHAPTER 3,ADJUSTING THE ACCOUNTS,Financial Accounting,Sixth Edition,财务会计,Explain the time period assumption.Explain the accrual basis of accounting.Explain the reasons for adjusting entries.Identify the major types of adjusting entries.Prepare adjusting entries for deferrals
2、.Prepare adjusting entries for accruals.Describe the nature and purpose of an adjusted trial balance.,Study Objectives,财务会计,Adjusting the Accounts,Timing Issues,The Basics of Adjusting Entries,The Adjusted Trial Balance and Financial Statements,Time period assumptionFiscal and calendar yearsAccrual-
3、vs.cash-basis accountingRecognizing revenues and expenses,Types of adjusting entriesAdjusting entries for deferralsAdjusting entries for accrualsSummary of journalizing and posting,Preparing the adjusted trial balancePreparing financial statements,财务会计,Generally a month,a quarter,or a year.Fiscal ye
4、ar vs.calendar yearAlso known as the“Periodicity Assumption”,Timing Issues,Accountants divide the economic life of a business into artificial time periods(Time Period Assumption).,LO 1 Explain the time period assumption.,Jan.,Feb.,Mar.,Apr.,Dec.,.,财务会计,The time period assumption states that:,a.reven
5、ue should be recognized in the accounting period in which it is earned.b.expenses should be matched with revenues.c.the economic life of a business can be divided into artificial time periods.d.the fiscal year should correspond with the calendar year.,Review,Timing Issues,LO 1 Explain the time perio
6、d assumption.,财务会计,Accrual-Basis AccountingTransactions recorded in the periods in which the events occur.Revenues are recognized when earned,rather than when cash is received.Expenses are recognized when incurred,rather than when paid.,Timing Issues,Accrual-vs.Cash-Basis Accounting,LO 2 Explain the
7、 accrual basis of accounting.,财务会计,Cash-Basis AccountingRevenues are recognized when cash is received.Expenses are recognized when cash is paid.Cash-basis accounting is not in accordance with generally accepted accounting principles(GAAP).,Timing Issues,Accrual-vs.Cash-Basis Accounting,LO 2 Explain
8、the accrual basis of accounting.,财务会计,Revenue Recognition Principle,Timing Issues,Recognizing Revenues and Expenses,LO 2 Explain the accrual basis of accounting.,Companies recognize revenue in the accounting period in which it is earned.In a service enterprise,revenue is considered to be earned at t
9、he time the service is performed.,财务会计,Matching Principle,Timing Issues,Recognizing Revenues and Expenses,LO 2 Explain the accrual basis of accounting.,Match expenses with revenues in the period when the company makes efforts to generate those revenues.“Let the expenses follow the revenues.”,财务会计,Ti
10、ming Issues,LO 2 Explain the accrual basis of accounting.,GAAP relationships in revenue and expense recognition,Illustration 3-1,财务会计,One of the following statements about the accrual basis of accounting is false.That statement is:Events that change a companys financial statements are recorded in th
11、e periods in which the events occur.Revenue is recognized in the period in which it is earned.The accrual basis is in accordance with generally accepted accounting principles.Revenue is recorded only when cash is received,and expense is recorded only when cash is paid.,Review,Timing Issues,LO 2 Expl
12、ain the accrual basis of accounting.,财务会计,Adjusting entries make it possible to report correct amounts on the balance sheet and on the income statement.A company must make adjusting entries every time it prepares financial statements.,The Basics of Adjusting Entries,LO 3 Explain the reasons for adju
13、sting entries.,财务会计,Revenues-recorded in the period in which they are earned.Expenses-recognized in the period in which they are incurred.Adjusting entries-needed to ensure that the revenue recognition and matching principles are followed.,The Basics of Adjusting Entries,LO 3 Explain the reasons for
14、 adjusting entries.,财务会计,Adjusting entries are made to ensure that:a.expenses are recognized in the period in which they are incurred.b.revenues are recorded in the period in which they are earned.c.balance sheet and income statement accounts have correct balances at the end of an accounting period.
15、d.all of the above.,Review,Timing Issues,LO 3 Explain the reasons for adjusting entries.,财务会计,Types of Adjusting Entries,DeferralsPrepaid Expenses.Expenses paid in cash and recorded as assets before they are used or consumed.Unearned Revenues.Cash received and recorded as liabilities before revenue
16、is earned.AccrualsAccrued Revenues.Revenues earned but not yet received in cash or recorded.Accrued Expenses.Expenses incurred but not yet paid in cash or recorded.,LO 4 Identify the major types of adjusting entries.,财务会计,Trial Balance Each account is analyzed to determine whether it is complete and
17、 up-to-date.,Trial Balance,LO 4 Identify the major types of adjusting entries.,财务会计,Deferrals are either:Prepaid expenses or Unearned revenues.,Adjusting Entries for Deferrals,LO 5 Prepare adjusting entries for deferrals.,财务会计,Payment of cash,that is recorded as an asset because service or benefit w
18、ill be received in the future.,Adjusting Entries for“Prepaid Expenses”,insurancesuppliesAdvertisingrent,Cash Payment,Expense Recorded,BEFORE,LO 5 Prepare adjusting entries for deferrals.,Prepayments often occur in regard to:,building purchasesequipment purchases,财务会计,Prepaid ExpensesCosts that expir
19、e either with the passage of time or through use.Adjusting entries(1)to record the expenses that apply to the current accounting period,and(2)to show the unexpired costs in the asset accounts.,Adjusting Entries for“Prepaid Expenses”,LO 5 Prepare adjusting entries for deferrals.,财务会计,Adjusting Entrie
20、s for“Prepaid Expenses”,LO 5 Prepare adjusting entries for deferrals.,Illustration 3-4Adjusting entries for prepaid expenses,Increases(debits)an expense account and Decreases(credits)an asset account.,财务会计,Example(Insurance):On Oct.4th,Pioneer Advertising paid$600 for a one-year fire insurance polic
21、y.Show the journal entry to record the payment on Oct 4th.,Cash,600,Prepaid insurance,600,Oct.4,Debit,Credit,Prepaid Insurance,600,600,Debit,Credit,Cash,Adjusting Entries for“Prepaid Expenses”,LO 5 Prepare adjusting entries for deferrals.,财务会计,Example(Insurance):On Oct.4th,Pioneer Advertising paid$6
22、00 for a one-year fire insurance policy.Show the adjusting journal entry required at Oct.31st.,Prepaid insurance,50,Insurance expense,50,Oct.31,Debit,Credit,Prepaid Insurance,600,50,Debit,Credit,Insurance Expense,50,550,Adjusting Entries for“Prepaid Expenses”,LO 5 Prepare adjusting entries for defer
23、rals.,财务会计,DepreciationBuildings,equipment,and vehicles(long-lived assets)are recorded as assets,rather than an expense,in the year acquired.Companies report a portion of the cost of a long-lived asset as an expense(depreciation)during each period of the assets useful life(Matching Principle).,Adjus
24、ting Entries for“Prepaid Expenses”,LO 5 Prepare adjusting entries for deferrals.,财务会计,Example(Depreciation):On Oct.2nd,Pioneer Advertising paid$5,000 for office equipment that has an expected useful life of 10 years.Show the journal entry to record the purchase of the equipment on Oct.2nd.,Cash,5,00
- 配套讲稿:
如PPT文件的首页显示word图标,表示该PPT已包含配套word讲稿。双击word图标可打开word文档。
- 特殊限制:
部分文档作品中含有的国旗、国徽等图片,仅作为作品整体效果示例展示,禁止商用。设计者仅对作品中独创性部分享有著作权。
- 关 键 词:
- 财务会计 ch03
链接地址:https://www.desk33.com/p-272868.html