Why are adjustments required?

Describe the two categories of adjustments

Provide two examples of each category and what accounts (i.e. asset, liability, expense or revenue) will be affected by these adjustments.

Describe the expense recognition principle. What is another name for this principle.

Describe and list the purpose of a contra-account. Provide an example to explain your description.

What is the adjusted trial balance and why is it critical to the accounting cycle?

Describe the difference between temporary and permanent accounts. Give and example of each.

What accounts will have a zero balance at the end of the accounting cycle and why?

In what order are the financial statements created and why is the order important?