Every time a company prepares financial statements, adjusting entries are required Generally, financial statements are prepared at the end of each month, the end of each quarter and at the end of each year Each adjusting entry affects a balance sheet account and an income statement account For example, Adjusting Entries for Prepaid Assets or Fixed Assets involve decreasing the asset account and increasing the expense account Adjusting entries are made in order properly follow GAAP Based on your review of Chapter 3, describe an adjusting journal entry that is needed at the end of an accounting period Why are adjusting entries important and how do they contribute to accurate financial reporting Accrual accounting is required under U S GAAP One of the main principles of accrual accounting is the Matching Principle, also known as the Revenue Recognition Principle and the Expense Recognition Principle Consult are liable resource online and in your ownwords, explain the difference between accrual basis accounting and cash basis accounting How does this relate to the Matching Principle This is the first response listed below I need more information 1 Should not write the check today and record the expense or write the check tomorrow 2 Affect of the company if the check cut today and didn't record the expense, then the net income of the current fiscal year will be increased by $2,000 and net income of the next year will be decreased by $2,000 It happens due to error 3 If check cut today and expense recorded tomorrow then the current year financial statement shows $2,000 higher net income and the amount in the balance sheet will be reduced by $2,000

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Every time a company prepares financial statements, adjusting entries are required.Generally, financial statements are prepared at the end of each month, the end of each

Every time a company prepares financial statements, adjusting entries are required.Generally, financial statements are prepared at the end of each month, the end of each quarter and at the end of each year.

Each adjusting entry affects a balance sheet account and an income statement account.For example, Adjusting Entries for Prepaid Assets or Fixed Assets involve decreasing the asset account and increasing the expense account.Adjusting entries are made in order properly follow GAAP.

Based on your review of Chapter 3, describe an adjusting journal entry that is needed at the end of an accounting period.
Why are adjusting entries important and how do they contribute to accurate financial reporting?
Accrual accounting is required under U.S. GAAP. One of the main principles of accrual accounting is the Matching Principle, also known as the Revenue Recognition Principle and the Expense Recognition Principle. Consult are liable resource online and in your ownwords, explain the difference between accrual basis accounting and cash basis accounting. How does this relate to the Matching Principle?

This is the first response listed below I need more information

1.Should not write the check today and record the expense or write the check tomorrow.

2.Affect of the company if the check cut today and didn't record the expense, then the net income of the current fiscal year will be increased by $2,000 and net income of the next year will be decreased by $2,000. It happens due to error.

3.If check cut today and expense recorded tomorrow then the current year financial statement shows $2,000 higher net income and the amount in the balance sheet will be reduced by $2,000.