Accounting the Matching Concept and the Adjusting Process (PowerPoint PPT)

BENEFITS OF DOCUMENT

1. Provides of How the matching concept relates to the accrual basis of accounting.
2. Provides of The adjustment process and prepare an adjusted trial balance.
3. Provides of Vertical analysis to compare financial statement with industry averages.

DESCRIPTION

This product (Accounting the Matching Concept and the Adjusting Process) is a 50-slide PPT PowerPoint presentation (PPT), which you can download immediately upon purchase.

Accounting The Matching Concept and The Adjusting Process

Lecture Outline
1. How the matching concept relates to the accrual basis of accounting.
2. Adjustments are necessary and list the characteristics of adjusting entries.
3. Journalize entries for accounts requiring adjustment.
4. The adjustment process and prepare an adjusted trial balance.
5. Vertical analysis to compare financial statement with industry averages.

The definition of the matching concept in accounting is a principle that expenses relative to income must be recorded for the same time period. Discover examples of how to use the matching concept in inventory costing systems, recording accrued interests, and in warranties.

Accounting is a continuous task but, for the sake of simplicity, it must be divided into specific periods so that bookkeepers can run meaningful reports. As such, the matching principle dictates that an expense must be recorded in the same period as the income to which it is related.

The matching principle is one of the basic underlying guidelines in accounting. The matching principle directs a company to report an expense on its income statement in the period in which the related revenues are earned. Further, it results in a liability to appear on the balance sheet for the end of the accounting period. The matching principle is associated with the accrual basis of accounting and adjusting entries.

Source: Best Practices in Management Accounting PowerPoint Slides: Accounting the Matching Concept and the Adjusting Process PowerPoint (PPT) Presentation, UJ Consulting