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The chapter is based more on accounting adjustments. Students have to learn the functionality of accrual accounting, recognize revenue and expenses. Most of the students find it hard to analyze the difference between accrual basis and cash basis. This chapter clears all such doubts. It shows how adjustments with regards to depreciation, accrued revenue, prepaid expenses etc. The lesson is vast and incorporates most of the elements of financial statements. The lesson is better understood with help from professionals.
Following are the terms that are expected for students to be well versed with. It is not only the term but its respective entry in the books of accounts, the adjustment entries and their position at the financial statements. To name a few-
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