August 2022
Beginner
752 pages
19h 29m
English
book
Accounting All-in-One For Dummies (+ Videos and Quizzes Online), 3rd Edition
by Michael Taillard, Joseph Kraynak, Kenneth W. Boyd
Content preview from Accounting All-in-One For Dummies (+ Videos and Quizzes Online), 3rd Edition
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Chapter 6
Adjusting the Books
IN THIS CHAPTER
Going over types of accounting adjustments
Making adjustments for noncash transactions
Taking your adjustments for a trial (balance) run
During an accounting period, your bookkeeping duties focus on your business’s day-to-day transactions. When the time comes to report transactions in financial statements, you must make some adjustments to your books. Your financial reports are supposed to report your company’s financial condition, so your books must reflect any significant change in the value of your assets, even if that change doesn’t involve the exchange of cash. Those changes are adjustments.
If you use cash-basis accounting, many adjustments aren’t necessary because you record transactions only when cash changes hands. (See Book 1, Chapter 4 to find out more about the two accounting methods: accrual and cash basis.) The accrual basis of accounting, on the other hand, requires you to make adjustments to match revenue with the expenses incurred to generate revenue. Because the accrual method isn’t directly connected to cash transactions, you must post adjustments.
In this chapter, you’ll review the types of adjustments you need to ...
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O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.