Chapter F3 Power notes The Matching Concept and the Adjusting Process Learning Objectives 1. The Matching Concept 2. Nature of the Adjusting Process 3. Recording Adjusting Entries 4. Summary of Adjustment Process 5. Financial Analysis and Interpretation C3 c3-1
C3 - 1 Learning Objectives Power Notes The Matching Concept and the Adjusting Process 1. The Matching Concept 2. Nature of the Adjusting Process 3. Recording Adjusting Entries 4. Summary of Adjustment Process 5. Financial Analysis and Interpretation Chapter F3 C3
Chapter F3 Power notes The Matching Concept and the Adjusting Process Slide Power Note Topics 3. Reporting Revenue and Expense 6. The Matching Concept 9. Trial Balance, chart of Accounts 20. Deferrals and Accruals 36. Summary of Adjustments 41· Vertical Analysis 一Note: To select a topic, type the s|de排 and press Enter c3-2
C3 - 2 • Reporting Revenue and Expense • The Matching Concept • Trial Balance, Chart of Accounts • Deferrals and Accruals • Summary of Adjustments • Vertical Analysis Slide # Power Note Topics 3 6 9 20 36 41 Note: To select a topic, type the slide # and press Enter. Chapter F3 The Matching Concept and the Adjusting Process Power Notes
Reporting Revenue and Expense S7 TWO METHODS Cash Basis of Accounting Accrual Basis of Accounting c3-3
C3 - 3 TWO METHODS Reporting Revenue and Expense Cash Basis of Accounting Accrual Basis of Accounting
Cash Basis of Accounting Revenue reported when cash is received Expense reported when cash is paid Does not properly match revenues and expenses c3-4
C3 - 4 Cash Basis of Accounting Revenue reported when cash is received Expense reported when cash is paid Does not properly match revenues and expenses
Accrual Basis of Accounting Revenue reported when earned Expense reported when incurred Properly matches revenues and expenses in determining net income Requires adjusting entries at end of period It just sounds mean- it really isn't c3-5
C3 - 5 Accrual Basis of Accounting Revenue reported when earned Expense reported when incurred Properly matches revenues and expenses in determining net income Requires adjusting entries at end of period It just sounds mean – it really isn’t