W8

Answer the following questions:

Describe the revenue recognition principle. Give specifics.

Describe the expense recognition principle (matching principle). Give specifics.

What parts of the accounting cycle require analytical processes, rather than methodical processes? Explain.

Why is the adjusting process needed?

Name two types of adjusting journal entries that are commonly made before preparing financial statements? Explain, with examples.

Are there any accounts that would never have an adjusting entry? Explain.

Why do adjusting entries always include both balance sheet and income statement accounts?

Why are adjusting journal entries needed?