Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

3. Accrual Accounting Concepts

Summary of Adjusting Entries

Financial Accounting

3. Accrual Accounting Concepts

Summary of Adjusting Entries

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Multiple Choice

Which of the following is NOT accomplished by an adjusting entry?

Ensuring that revenues are recorded in the period in which they are earned

Bringing asset and liability accounts to their proper balances

Recording cash receipts and cash payments

Assigning expenses to the period in which they are incurred

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Verified step by step guidance

Understand the purpose of adjusting entries: Adjusting entries are made at the end of an accounting period to ensure that the financial statements reflect the correct revenues and expenses for that period. They are necessary for accrual accounting, which records revenues when earned and expenses when incurred, regardless of cash transactions.

Review the tasks accomplished by adjusting entries: Adjusting entries ensure that revenues are recorded in the period in which they are earned, assign expenses to the period in which they are incurred, and bring asset and liability accounts to their proper balances.

Identify the task that is NOT accomplished by adjusting entries: Adjusting entries do not involve recording cash receipts and cash payments. Cash transactions are typically recorded through regular journal entries, not adjusting entries.

Compare the options provided in the problem: Analyze each option to determine whether it aligns with the purpose of adjusting entries. The option 'Recording cash receipts and cash payments' does not align with the purpose of adjusting entries.

Conclude that the correct answer is the option that does not match the purpose of adjusting entries: 'Recording cash receipts and cash payments' is NOT accomplished by an adjusting entry.