BUSI 1101 Lecture Notes - Lecture 10: Financial Statement, Current Asset, Retained Earnings

• School: Memorial University
• Department: Business Administration
• Course: BUSI 1101
• Professor: N Wans

Document Summary

Have not been recognized at all until an adjustment is made. Expenses that have been incurred, but not yet paid or recorded (accrued expenses: adjusting entry results in an increase to both an expense and a liability account. Revenues that have been earned, but not received in cash (accrued revenues: adjusting entry results in an increase to both an asset and a revenue account. Prepared after all adjusting entries have been recorded and posted. Shows the balances of all accounts at the end of the accounting period, including those accounts that have bee adjusted. Proves total debit balances and total credit balances are equal after the adjusting entries have been made. The main source for preparation of financial statements. Revenue, expense, and dividends declared accounts are components of retained earnings considered to be temporary accounts. Statements of financial position accounts carry forward into the future: considered to be permanent accounts.