《银行会计学》（英文版） Chapter F3 The Matching Concept and the Adjusting Process

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

The Matching Concept Debits Credits Liabilities Assets Owner's Equity Expenses Revenues c3-6

C3 - 6 The Matching Concept Assets Liabilities Owner’s Equity Debits = Credits Expenses Revenues

The Matching Concept Debits Credits Liabilities Assets Owner's Equity Net Income Expenses Revenues c3-7

C3 - 7 The Matching Concept Assets Liabilities Owner’s Equity Debits = Credits Expenses Revenues Net Income

The Matching Concept Debits Credits Liabilities Assets Owner's Equity Net Income Expenses Revenues matchin g Net income is determined by properly matching expenses and revenues c3-8

C3 - 8 The Matching Concept Assets Liabilities Owner’s Equity Debits = Credits Net income is determined by properly matching expenses and revenues. Expenses Revenues Net Income matching

Netsolutions Unadjusted trial balance December 31. 2002 11 Cash 2,065 2 Accounts receivable 2,220 Assets 14 Supplies 2,000 15 Prepaid Insurance 2,400 17 Land 20,000 18 Office Equipment 1,800 c3-9

C3 - 9 NetSolutions Unadjusted Trial Balance December 31, 2002 11 Cash 2,065 12 Accounts Receivable 2,220 14 Supplies 2,000 15 Prepaid Insurance 2,400 17 Land 20,000 18 Office Equipment 1,800 Assets

Netsolutions Unadjusted trial balance December 31. 2002 11 Cash 2.065 12 Accounts Receivable 2.220 14 Supplies 2.000 15 Prepaid Insurance 2400 17 Land 20.000 18 Office Equipment 1,800 Liabilities 21 Accounts Payable 900 23 Unearned Rent 360 c3-10

C3 - 10 NetSolutions Unadjusted Trial Balance December 31, 2002 11 Cash 2,065 12 Accounts Receivable 2,220 14 Supplies 2,000 15 Prepaid Insurance 2,400 17 Land 20,000 18 Office Equipment 1,800 21 Accounts Payable 900 23 Unearned Rent 360 Liabilities