Web-Based Training Series: Accrual Accounting Procedures

Accrual Accounting Procedures        





It's the end of the fiscal year and all transactions must be accounted for. But there are some transactions that aren't complete, such as paying interest or delivering services. Do you record them or ignore them? The accrual basis of accounting is guided by the principle that says the revenue earned by a business must match all the expenses incurred to generate that revenue. This course will explain the step-by-step procedures to properly record incomplete transactions at the end of an accounting period. The transactions typically involve expenses, revenue, and depreciation. Accrual accounting procedures will ensure that your financial information about the business's performance is accurate. After all, accurate financial information is the basis for making crucial decisions in any successful business.


Individuals who require knowledge of the basics of accounting, who are starting a business, who are learning to manage the accounting activities of a business, or who need to review standard accounting principles and procedures.


2.0

Adjusting for Expenses

  • recognize the importance of performing adjustments for expenses.
  • calculate the remaining value of a prepaid expense, for a given time period.
  • sequence the steps to recording an adjusted prepaid expense, for a given scenario.
  • calculate the adjustment for an accrued expense, for a given period of time.
  • identify the steps to recording an adjustment for an accrued expense, in a given scenario.

    • Adjusting for Revenue

  • recognize the importance of preparing adjustments for unearned revenue and accrued revenue.
  • choose the unearned revenue transactions from a given list.
  • calculate the adjusted unearned revenue, for a given scenario.
  • sequence the steps to recording an adjustment for unearned revenue.
  • choose examples of accrued revenue transactions from a given list.
  • calculate the adjustment for accrued revenue, in a given scenario.
  • sequence the steps to recording adjusted accrued revenue, for a given accounting period.

    • Adjusting for Depreciation Expense

  • recognize the importance of making adjusting entries for depreciation expense.
  • calculate the depreciation expense of a given asset using the straight-line method.
  • apply the double declining-balance method to determine the depreciation expense of an asset, for a given time period.
  • sequence the steps to recording adjusted depreciation expense of a given asset.


    • FIN0122

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