a.Worksheets are required in every company’s accounting cycle. Please agree or disagree and explain why b What is the purpose of adjusting accounts? c What is the relationship of internal transactions to the adjusting process?

Q: When fresh start accounting is utilized, how are a company’s assets and its liabilities reported?

A: Except for deferred income taxes, all liabilities at the same time reported as future cash payments…

Q: What do the decisions based on accounting information include?

A: Accounting information is the collection and processing of the business transaction to conclude the…

Q: What purpose is served by preparing a trial balance in the accounting cycle?

A: Trial Balance: it is the statement of account balance which is prepared from closing balances of the…

Q: Generally accepted accounting principles require that companies use the _____ of accounting.…

A: Accounting concepts: These are the set of rules and guidelines which every company must follow in…

Q: Which of the following is the order of steps to journalize an entry? O A. Record the transaction…

A: Journal entries refer to the recording of transactions in an appropriate way. With the help of…

Q: Which one of the following characteristics of accounting information is related to Objectivity? a.…

A: Accounting information means that relevant accounting and financial information that is useful for…

Q: ow the external will use the accounting information to do decisions

A: Accounting information can be defined as the financial reports and data produced by way of…

Q: What type of internal and external accounting reports will you use in the process of making…

A: Internal accounting reports are managerial reports which are generated for use by managers at…

Q: How do we get the accounting records ready to prepare financial statements?

A: Explanation - There are three statements of the organization which show different accounting…

Q: xplain how a company's accounting function operates. In what way does this function serve a purpose,…

A: Accounting is the systematic recording of financial transactions and presentation of the same in…

Q: Accounting uses a double-entry system. Explain what this sentence means?

A: Business Accounting: Accounting refers to the process of recording analyzing and interpreting…

Q: Which of the following is true? a.The process of transferring information from the journal to the…

A: A transaction firstly recorded in the journal, then posted on the ledger, balance transferred on…

The Effect Of Prepaid Taxes On Assets And Liabilities

Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.

Final Accounts

Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.

Ledger Posting

A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time. 

Trial Balance and Final Accounts

In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally. 

Adjustment Entries

At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.