Asked by Priscila Troche on May 17, 2024
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Adjustments are necessary to bring an asset or liability account to its proper amount and also update a related expense or revenue account.
Adjustments
Records documented in the financial accounts at the end of a fiscal period to distribute revenues and expenses to the timeframe in which they were truly incurred.
Asset
An economic resource owned or controlled by a company that is expected to provide future benefits.
Liability Account
An accounting record that tracks obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits.
- Understand the significance of making adjustments during the creation of financial reports.
- Comprehend the purpose and effects of specific adjusting entries, such as those for unearned revenues, accrued expenses, and depreciation.
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Learning Objectives
- Understand the significance of making adjustments during the creation of financial reports.
- Comprehend the purpose and effects of specific adjusting entries, such as those for unearned revenues, accrued expenses, and depreciation.
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