Analyze and record various business transactions in accordance with generally accepted accounting principles.
This assessment addresses the following course objective(s):
Apply the accounting vocabulary
Analyze and record various business transactions in accordance with generally accepted accounting principles.
Instructions:
Answer one of the following questions of your choice:
Cash vs. Accrual Accounting: Explain the difference between the cash basis, and the accrual basis measures of performance. Provide examples of accounts that are treated differently under the two methods. Why, in most cases, does accrual basis net income provide a better measure of performance than cash basis net income?
Explain the purpose of adjusting entries. Choose one of the following adjusting entries and explain the purpose of the adjusting entry and the accounts involved. Create a scenario and provide the journal entry to support your pots. Choose from: depreciation, wages payable, supplies expense, prepaid rent or insurance, Interest payable or Interest receivable.
Prepaid rent
Wages Payable
Supplies
Depreciation
Interest Payable on a loan
Answer preview to analyze and record various business transactions in accordance with generally accepted accounting principles.
APA
375 words
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