What is the definition of an asset?
A liability? Assets- economic resources owned by a business that are expected to benefit future operations. Liabilities- present obligations of a business to pay cash, transfer assets, or provide services to other entities in the future. 18) What is a Trial Balance? Trial Balance is prepared at the end of an accounting period. It is an initial check that the ledger is in balance namely debits and credits. 19) Know how to analyze and prepare adjusting journal entries. Example) Accruals such as accrued expenses and accrued revenues, and Deferrals such as adjustments to prepaid assets, unearned revenue, adjustments to supplies, or the depreciation expense adjustment. Deferred expenses- cash payment precedes recognition of expense. Pre paid rent and insurance depreciation. Deferred revenues- cash collection precedes earning of revenue. Pre paid advertising. Accruals- cash flow has not happened yet but is certain. Interest, taxes. Accruals can be expenses and revenues. 20) Know how to calcu
