Financial accounting is a sum total of a variety of actions involving making entries in journals, posting them to ledgers and final preparation of account statements. Every student of accounting is expected to have an in-depth knowledge of these processes.
What are financial accounting adjustments?
Accounting adjustments or adjusting entries are those entries which are made at the end of accounting period to provide for expenses or income that has not been recorded in books. They are also called balance day adjustments as they are made on the day balance sheet is made. These entries are made on the basis of revenue recognition principle.
Adjustments in financial accounting homework answers- a difficult task?
Students of accounting have to deal with a number of topics to learn their lessons thoroughly. When given a straight question regarding final account preparation, you can nearly grasp it. But the moment you see adjustments to be made, you panic. There is no need for this. Adjustments are not so difficult if you use your logic and reasoning.
Need for adjusting entries
Adjustments need to be made as all income and expense relating to a particular period have to be accounted for in that period only. This means an expense for this year has to find a place in this yearâ€™s accounts irrespective of whether it has been actually paid or not. When you understand this basic principle, getting adjustments in financial accounting homework answers correct is not difficult.
Major types of adjusting entries
Adjusting entries which trouble students are mainly of two kinds-deferrals and accruals. Let us go a little deep into different kinds of adjustments.
This refers to expenses which are paid in advance or before they are actually due. Suppose a company has paid rent for one whole year in the last quarter of accounting year. The portion of rent related to current year will become expense and that related to coming year will be considered as an asset. This adjustment is done at the end of year.
Sometimes expenses which are due might not have been paid at end of financial year. These are not to be ignored. Expenses are considered on accrual basis, i.e. irrespective of whether they are paid or not, they have to be shown in accounts. They categorize as liability till fully paid.
This is another area of adjustment which students find confusing while doing adjustments in financial accounting homework answers. Any income which is received before time is considered as a liability.
This includes all income or revenue which company has to get but has not actually got. Till it is received, it will not be reflected in cash or bank statements. But you need to present these figures also in financial statements as assets.
Traditional or online help- which is better for accounting students?
This is an oft repeated topic of debate in todayâ€™s world of technology. While youngsters mostly vote for online assistance, elders are still skeptical about its reliability. Let me list out some points which act in favour of tech-assisted tutoring.
The biggest advantage of professional homework help website is their easy reach. For traditional tutoring assistance students need to waste a lot of time on travel. By going online, they have things at their fingertips.
All accounting students get doubts at some point. If it is related to difficult topics like accounting adjustments, the chances are slim that you get help from home. With online professional help, you get to ask any number of doubts without any hesitation. If you are concerned about adjustments infinancial accounting homework answers, get online help for better grades.
A reliable website will definitely undertake to complete homework in stipulated time period. If you set out yourself or ask for assistance from peers, the chances are that they might not be done within given deadlines.
Needless to say, good educational websites have experts working for them in every field of knowledge. They are readily available all day to help you with all difficult situations. So make use of this and get good grades.
When you are given a homework with lots of adjusting entries, you become frightened. This fear causes mistakes, some of which might be silly. So instead of going wrong in every step, it is better to take help in getting adjustments in financial accounting homework answers correctly done.
There are some who argue that homework is to be done by students as they are given for their better understanding of concepts. While this is true to an extent, in todayâ€™s fast-paced world students are under lots of pressure. Getting assignments done by professionals will ease their worries and help them devote more time for studies.
Precautions for betterment
Although depending on online sources is an option, it should be done with caution.
We have therefore come to the conclusion that adjustments in accounting, though challenging, need not be a cause of worry. You only need practice and online help.