Principles of Accounting 100

1. Explain your understanding of (a) the revenue recognition principle and (b) the expense recognition principle. Discuss how these principles are related to the accrual basis of accounting.

2. Why are closing entries required at the end of an accounting period? What is the difference between adjusting entries and closing entries?

3. Discuss your understanding of Accounting, who uses accounting information and the importance of maintaining accounting data.

4. If the two totals of a trial balance are equal, does it mean that there are no errors in the accounting records? Explain.