住所(经营场所)25.pptVIP

1 Explain the time period assumption. 2 Explain the accrual basis of accounting. 3 Explain why adjusting entries are needed. 4 Identify the major types of adjusting entries. 5 Prepare adjusting entries for prepayments. 6 Prepare adjusting entries for accruals. 7 Describe the nature and purpose of an adjusted trial balance. Explain the time period assumption. TIME-PERIOD ASSUMPTION The time period (or periodicity) assumption assumes that the economic life of a business can be divided into artificial time periods. Accounting time periods are generally a month, a quarter, or a ye