Adjusting entries are typically prepared:

at the end of the accounting period.

When a deferral adjustment is made to a liability account, that liability

becomes a(n):
revenue.

Which of the following best describes when an accrual adjustment is

required?
An expense has been incurred but not yet paid in cash

The process of allocating the cost of buildings, vehicles, and equipment to

the accounting periods in which they are used is called:
Depreciation

A contra-account:
offsets, or reduces, another account.

How does the timing of adjusting entries differ from the accounting for
daily transactions?
Adjustments are made at the end of the accounting period because
making them on a daily basis would be inefficient.

How does the adjustment for depreciation differ from other deferral
adjustments?
The depreciation adjustment uses a contra-asset account rather than
reducing the asset account directly.

Why is the balance in the Depreciation Expense account generally

different from the balance in the Accumulated Depreciation account?
Depreciation expense only reflects the current period depreciation.
Accumulated Depreciation contains depreciation since the asset was
purchased.

Amortization is the concept that applies to the:

expensing of long-term assets that lack physical substance over their
useful lives.

Amortization is the expensing of:

long-term assets that lack physical substance.

After the adjustments have been completed, the adjusted balance in

Deferred Revenue represents the:
amount of the sales or services still owed to the customer.
Accounts Receivable should be increased for:
revenues earned during the period but not yet collected.

Which of the following statements is correct regarding the use of the Cash
account in deferral and accrual adjustments at the end of the accounting
period?
Cash is never involved in end-of-period deferral or accrual adjustments.

Which of the following statements about adjusting entries is not correct?

Adjusting entries often affect the cash account.

The unadjusted trial balance is a key starting point for the adjustment
process. Which of the following accounts is likely to be affected by an
adjusting entry?
Deferred Revenue

Which of the following statements about the income statement is correct?

Revenues are listed before expenses on the income statement.

First Corporation had Retained Earnings at the end of December 31, 2022
of $900,000. During 2023, the company had net income of $340,000 and
declared dividends of $40,000. The amount of Retained Earnings reported
on the balance sheet as of December 31, 2023 will be:
$1,200,000.

Which of the following statements is correct?

Financial statements are prepared after adjustments to ensure that all
accounts have been brought to their correct balance.

Which line item is reported on both the income statement and statement
of retained earnings?
Net Income

Which of the following is the usual last step in the accounting cycle?
Preparing a post-closing trial balance

Which of the following is the usual last step in the accounting cycle?
Preparing a post-closing trial balance

First Corporation had Retained Earnings at the end of December 31, 2022
of $453,000. During 2023, the company had net income of $173,000 and
declared dividends of $20,300. The amount of Retained Earnings reported
on the balance sheet as of December 31, 2023 will be:
$605,700.

First Corporation had Retained Earnings at the end of December 31, 2022
of $459,000. During 2023, the company had net income of $179,000 and
declared dividends of $20,900. The amount of Retained Earnings reported
on the balance sheet as of December 31, 2023 will be:
$617,100.
What knowledge can I learn from all these question? Can you organized
for me?
So how we apply these concept in account equation? any example?

Adjusting entries are typically prepared at the end of the accounting

period to ensure that the financial statements reflect the company's
financial position and performance accurately.

Sure, let's use an example to demonstrate how these concepts apply to

the accounting equation.

Let's say a company purchases a machine for $10,000 on January 1st of a

given year, and the machine has an expected useful life of 5 years with no
expected salvage value at the end of its life. The company uses the
straight-line method of depreciation. Additionally, the company provides
services to a customer for $1,000 on December 30th, but the customer
has not yet paid for the services.

At the end of the year, the company needs to make adjusting entries to
ensure that its financial statements accurately reflect its financial position
and performance. Here's how these concepts would apply to the
accounting equation:

Depreciation: The company needs to record the depreciation expense for

the year. Since the company is using the straight-line method, the annual
depreciation expense would be $2,000 ($10,000 cost / 5-year useful life).
The journal entry to record the depreciation expense would be:
Depreciation Expense $2,000
Accumulated Depreciation $2,000

This decreases the value of the company's assets (since the machine has
depreciated) and increases the amount of accumulated depreciation,
which is a contra-asset account.

Accrual adjustment: The company needs to record the revenue earned but
not yet received for services provided to the customer on December 30th.
The journal entry to record this would be:
Accounts Receivable $1,000
Service Revenue $1,000
This increases the amount of accounts receivable, which is an asset
account, and increases the amount of service revenue, which is a revenue
account.

After these adjustments, the accounting equation would look like this:

Assets = Liabilities + Equity

$10,000 (machine) - $2,000 (accumulated depreciation) + $1,000
(accounts receivable) = 0 + $9,000 (equity)

This shows that the company's total assets are $9,000, which equals its
total equity. By making these adjustments, the company has accurately
reflected its financial position and performance in its financial statements.

Financial statements are prepared after adjustments to ensure that all

accounts have been brought to their correct balance.

The usual last step in the accounting cycle is to prepare a post-closing trial
balance.

我可以從所有這些問題中學到什麼知識？ 你能幫我安排嗎？
那麼我們如何在賬戶等式中應用這些概念呢？ 有什麼例子嗎？

調整分錄 Adjusting entries 通常在會計期末準備，以確保財務報表準確反映公司的財務狀況和業績。

當然，讓我們用一個例子來說明這些概念如何應用於會計等式。

假設一家公司在給定年份的 1 月 1 日以 10,000 美元購買了一台機器，該機器的預期使用壽命為 5 年，在其使用壽命結束時沒有

預期殘值。 本公司採用直線法計提折舊。 此外，該公司在 12 月 30 日以 1,000 美元的價格向客戶提供服務，但客戶尚未支付服
務費用。

年末，公司需要進行分錄調整 adjusting entries，以確保財務報表準確反映公司的財務狀況和經營成果。 以下是這些概念如何應

用於會計等式：

折舊 Depreciation：公司需要記錄當年的折舊費用。 由於公司使用直線法，每年的折舊費用為 2,000 美元（10,000 美

元成本/5 年使用壽命）。 記錄折舊費用的日記帳分錄為：
折舊費用 Depreciation Expense $2,000
累計折舊 Accumulated Depreciation $2,000

這降低了公司資產的價值（因為機器已經折舊）並增加了累計折舊金額，這是一個資產抵銷賬戶。
This decreases the value of the company's assets (since the machine has
depreciated) and increases the amount of accumulated depreciation,
which is a contra-asset account.
應計調整 Accrual adjustment：公司需要記錄在 12 月 30 日為客戶提供的服務已賺取但尚未收到的收入。 記錄這件事
的日記賬分錄是：
應收賬款 Accounts Receivable $1,000
服務收入 Service Revenue $1,000

這增加了作為資產賬戶的應收賬款金額，並增加了作為收入賬戶的服務收入金額。

經過這些調整後，會計等式將如下所示：

資產=負債+權益
10,000 美元（機器）- 2,000 美元（累計折舊）+ 1,000 美元（應收賬款）= 0 + 9,000 美元（股權）

這表明該公司的總資產為 9,000 美元，等於其總股本。 通過這些調整，公司在財務報表中準確反映了公司的財務狀況和業績。

財務報表是在調整後編制的，以確保所有賬戶都達到正確的平衡。
Financial statements are prepared after adjustments to ensure that all
accounts have been brought to their correct balance.

會計週期中通常的最後一步是準備結算後試算表 post-closing trial balance.