《会计英语》PPT课件.ppt

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1、AccountingEnglish@20171Chapter2-2AccountingCycle(Cont.)AccountingEnglish@20172Beforefinancialstatementscanbeprepared,theaccountsmustbereviewedtoensuretheyreflectthecorrectbalances;adjustmentswillbeneededtoadjustprepaymentsandunearnedamounts,andtorecordamortizationandaccruals.Theadjustedtria

2、lbalanceisusedtopreparethestatements.Closingentriesarejournalizedandpostedinpreparationforthenextaccountingperiod.AccountingEnglish@20173NeedforadjustmentsThelifeofabusinessisdividedintoaccountingperiodssothatperiodicfinancialreportscanbepreparedandused.Adjustmentsattheendofeachperiodarenec

3、essarytoupdatesomeoftheasset,liability,expense,andrevenueaccountsandtoshowtheeffectsofpreviouslyunrecordedinternaleconomiceventsofthebusiness.…….AccountingEnglish@20174Revenue=CashreceivedExpense=CashpaidRevenue<>CashreceivedExpense<>Cashpaid……AccountingEnglish@20175Accrualandcashbasisaccou

4、ntingAccrualaccountingrequiresadjustmentsforprepaid,unearned,andaccrueditems;therefore,itreportsrevenueswhenearnedandexpenseswhentheexpirationofbenefitisincurred.Cashbasisaccountingdoesnotmakeadjustments;revenuesarerecordedwhencashisreceivedandexpensesarerecordedwhencashispaid.Thecashbasiso

5、faccountingisnotgenerallyaccepted.AccountingEnglish@20176Adjustingtheaccounts(…step5)Adjustingentriesarejournalizedinthegeneraljournalandthenpostedintothegeneralledger.Adjustingentriesareusedto:chargetheexpiredportionofprepaidexpensestoExpensechargetheexpiredportionoffixedassetscosttoAmorti

6、zation/DepreciationexpenseaccrueexpensesandrecordtherelatedliabilitiesrecognizeasrevenuestheearnedportionofunearnedrevenueliabilitiesaccruerevenuesandrecordtherelatedassetsAccountingEnglish@20177PrepaidExpensesAccruedExpensesUnearnedRevenueAccruedRevenueTypesofAdjustingEntriesDepreciationAc

7、countingEnglish@20178Entriestoprepaidexpenses…PriorPeriodsCurrentPeriodFuturePeriodsTransactionPaidfutureexpensesinadvance(createsanasset).EndofCurrentPeriodAdjustingEntryRecognizeportionofassetconsumedasexpense,andReducebalanceofassetaccount.Entriestopr