This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Explain why adjustments are needed at the end of each accounting period. What will be an ideal ... (Read 353 times)

joe

  • Hero Member
  • *****
  • Posts: 627
on: Jul 5, 2018
Explain why adjustments are needed at the end of each accounting period.
 
  What will be an ideal response?

Question 2

The difference between the balance in the cash account on the depositor's books and the bank's books is usually due to errors.
 a. True
   b. False
   Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Liamb2179

  • Sr. Member
  • ****
  • Posts: 365
Reply #1 on: Jul 5, 2018
Answer to Question 1

Adjustments are needed to update certain account balances at the end of each period. These updates are needed because of timing differences between collecting cash and earning revenue, and timing differences between paying cash and incurring expenses. Without these adjustments, the proper amounts of revenues and expenses would not be recorded on the income statement and the statement of changes in shareholders' equity. Similarly, assets, liabilities, and shareholders' equity would be misstated on the balance sheet.

Answer to Question 2

False


joe

  • Member
  • Posts: 627
Reply 2 on: Jul 5, 2018
YES! Correct, THANKS for helping me on my review

Alyson.hiatt@yahoo.com

  • Member
  • Posts: 354
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

Did you know?

Egg cells are about the size of a grain of sand. They are formed inside of a female's ovaries before she is even born.

Did you know?

Less than one of every three adults with high LDL cholesterol has the condition under control. Only 48.1% with the condition are being treated for it.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

Synodic Period Synodic Period
Night Attack on the Sanjo Palace (detail), from the Scrolls of Events of the Heiji Period. Night Attack on the Sanjo Palace (detail), from the Scrolls of Events of the Heiji Period.
Observed Mother–Child Arguments at Five Time Points Over an Eight-Year Period Observed Mother–Child Arguments at Five Time Points Over an Eight-Year Period
The tools and equipment needed to perform a compression test include a compression gauge, an air ... The tools and equipment needed to perform a compression test include a compression gauge, an air ...
Growth Accounting for Europe, A.D. 500–1700 Growth Accounting for Europe, A.D. 500–1700
Fetal Period Fetal Period
Video: Nervous pathway to the Neuromuscular (NMJ)

For a complete list of videos, visit our video library