Category: Financial Accounting Review

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CASH AND CASH EQUIVALENTS 1. Bank reconciliation: Adjustments from bank balance: Deposits in transit, outstanding checks. Adjustments from book balance: Deposits not recorded, not sufficient

Adjusting entries are prepared to adjust account balances from cash basis to accrual basis.   © AccountingInfo.com  

Accruals Accrued revenues and expenses are recognized before cash is received or paid. Under accrual basis accounting, revenues are recognized when they are earned even