Chapter 3 Adjusting the Accounts
Learning Objectives
After studying this chapter, you should be able to:
- Explain the time period assumption.
- Explain the accrual basis of accounting.
- Explain the reasons for adjusting entries.
- Identify the major types of adjusting entries.
- Prepare adjusting entries for deferrals.
- Prepare adjusting entries for accruals.
- Describe the nature and purpose of an adjusted trial balance.
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