Chapter 3Adjusting the Accounts



Learning Objectives

After studying this chapter, you should be able to:

1 Explain the time period assumption.

2 Explain the accrual basis of accounting.

3 Explain the reasons for adjusting entries.

4 Identify the major types of adjusting entries.

5 Prepare adjusting entries for deferrals.

6 Prepare adjusting entries for accruals.

7 Describe the nature and purpose of an adjusted trial balance.


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