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Business LibreTexts

3: Adjusting Accounts for Financial Statements

  • Page ID
    • girl-160172__340.png
    • Contributed by Henry Dauderis and David Annand
    • Athabasca University
    • Sourced from Lyryx Learning

    learning objectives

    • LO1 – Explain how the timeliness, matching, and recognition GAAP require the recording of adjusting entries.
    • LO2 – Explain the use of and prepare the adjusting entries required for prepaid expenses, depreciation, unearned revenues, accrued revenues, and accrued expenses.
    • LO3 – Prepare an adjusted trial balance and explain its use.
    • LO4 – Use an adjusted trial balance to prepare financial statements.
    • LO5 – Identify and explain the steps in the accounting cycle.
    • LO6 – Explain the use of and prepare closing entries and a post-closing trial balance.

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