住所(经营场所)25.ppt

John Wiley & Sons, Inc.
Prepared by
Marianne Bradford, Ph. D.
Bryant College
Accounting Principles, 6e Weygandt, Kiesocognized in the accounting period in which it is earned.
In a service business, revenue is considered to be earned at the time the service is performed.
THE MATCHING PRINCIPLE
The practice of expense recognition is referred to as the matching principle.
The matching principle dictates that efforts (expenses) be matched with accomplishments (revenues).
Revenues
earned
this month
are offset
against....
expenses
incurred in
earning the
revenue
ILLUSTRATION 3-1 GAAP RELATIONSHIPS IN REVENUE AND EXPENSE RECOGNITION
Time-Period Assumption
Economic life of business
can be divided into
artificial time periods
Revenue-Recognition Principle
Revenue recognized in
the accounting period in
which it is earned
Matching Principle
Expenses matched with revenues
in the same period when efforts are expended to generate revenues
STUDY OBJECTIVE 3
Explain why adjusting entries are needed.
ADJUSTING ENTRIES
Adjusting entries are made in order for:
1 Revenues to be recorded in the period in which they are earned, and for......
2 Expenses to be recognized in the period in which they are incurred.
STUDY OBJECTIVE 4
Identify the major types of adjusting entries.
Adjusting entries are required each time financial statements are prepared.
Adjusting entries can be classified as
1 prepayments (prepaid expenses or unearned revenues) OR
2 accruals (accrued revenues or accrued expenses)
ADJUSTING ENTRIES
TYPES OF ADJUSTING ENTRIES
Prepayments
1 Prepaid Expenses — Expenses paid in cash and recorded as assets before they are used or consumed
2 Unearned Revenues — cash received and recorded as liabilities before revenue is earned
TYPES OF ADJUSTING ENTRIES
Accruals
1 Accrued Revenues — Revenues earned but not yet received in cash or recorded
2 Accrued Expenses — Expenses incurred but not yet paid in cash or recorded
ILLUS