The balances reported in the trial balance are not final figures, even if the trial balance has equal debits and credits. The balances need to be adjusted and brought to the correct amounts. There are many reasons why the reported amounts in the unadjusted trial balance need to be adjusted. These include the effect of accrual basis accounting. Certain items of income or expense may apply to different periods, and will affect the balances in the statement of financial position, and the reported performance of the enterprise. Other differences are caused by errors or omissions. When balances in the financial statements need to be restated to the correct amounts, the proper procedure is through adjusting entries.
Runtime Approx 90 mins; Access period 30 days from registration date; Learners Accounting students, entrepreneurs, non-accountant professionals; Recommended previous course Unadjusted Trial Balance; Recommended next course Accounting for Cost of Goods Sold and Cost of Services.