Cost Management
Why must financial information be adjusted?
USD 5.00
Learning Objectives:
- Explain the purpose and necessity of adjusting entries.
- List examples of several typical accounts that require adjusting entries.
- Define an “accrued expense.”
- Provide examples of adjusting entries for various accrued expenses.
- Describe the reason that accrued expenses often require adjusting entries but not in every situation.
- Explain the need for an adjusting entry in the reporting of prepaid expenses and be able to prepare that adjustment.
- Explain the need for an adjusting entry in the reporting of accrued revenue and be able to prepare that adjustment.
- Describe the difficulty of determining when the earning process for revenue is substantially complete and discuss possible resolutions.
- Explain the need for an adjusting entry in the reporting of unearned revenue and be able to prepare that adjustment.
- Prepare an income statement, statement of retained earnings, and balance sheet based on the balances in an adjusted trial balance.
- Explain the purpose and construction of closing entries.
Other course details:
- This is an introductory course that does not require any prerequisite.
- This course can be taken on a standalone basis.
- This course is chapter 5 in the book titled "Financial Accounting".
- It provides 1 PDU (Technical skill) towards your PMP professional development education.
Course Features
Credit:
1 PDU
Skill Section:
Technical
Access:
Lifetime
Test Questions:
10