What were the most compelling topics learned in this course?
The most compelling topics in this course, for me, were the adjusting and closing entries. I found
that the different types of temporary accounts and the closing entries was the topics that I ha
What is an adjusting entry?
An adjusting entry is a journal entry made to ensure that the correct amounts of revenues and
expenses are recorded in the accrual-based accounting system. (2012, Editorial Board). These adjusting
entries are used to keep certa
What are the reasons for closing entries?
The first reason closing entries are done is to take all temporary accounts to a zero balance at the end
of an accounting period. (2012, Editorial Board). The next reason for closing entries is so
Define the accounting equation.
The accounting equation (Assets = Liabilities + Owners Equity) will always be true, no matter how
complex a business transaction might be. (2012, Editorial Board). No matter how small, or large, a
company/organization may b
Accounting for merchandise inventory is done using four different methods; specific
identification, FIFO, LIFO, and weighted average. In this posting I am going to talk about how
each of them works and give a couple of examples as to why a company would u