Summary of Study Objective2

Summary of Study - Summary of Study Objectives 1 Explain the revenue recognition principle and the matchin recognition principle dictates that

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Summary of Study Objectives 1 Explain the revenue recognition principle and the matchin recognition principle dictates that companies recognize revenu which it is earned. The matching principle dictates that compa when expenses make their contribution to revenues. 2 Differentiate between the cash basis and the accrual basis accounting means that companies record, in the periods in wh that change a company's financial statements even if cash has the cash basis, companies record events only in the periods in or pays cash. 3 Explain why adjusting entries are needed, and identify the entries. Companies make adjusting entries at the end of an ac ensure that companies record revenues in the period in which companies recognize expenses in the period in which they are adjusting entries are prepaid expenses, unearned revenues, acc expenses. 4 Prepare adjusting entries for deferrals. Deferrals are either revenues. Companies make adjusting entries for deferrals at th portion of the deferred item that represents the expense incurr
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This document was uploaded on 11/03/2011 for the course ACCOUNTING ac 201 at Montgomery.

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Summary of Study - Summary of Study Objectives 1 Explain the revenue recognition principle and the matchin recognition principle dictates that

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