Chapter4DeferralsandAccruals（翻译题注意）AdjustingentriesAdjustingentries:Entriesmadeattheendoftheaccountingperiodforthepurposeofrecognizingrevenueandexpensesthatarenotproperlymeasuredasaresultofjournalizingtransactionsastheyoccur10名词会计期末编制的一种分录，用来确认那些发生时未被恰记入日记账的收入和费用，目的是为每个期间的利润表确定恰当的收入和费用的金额。Theneedforadjustingentries:Adjustingentriesareneededattheendofeachaccountingperiodtomakecertainthatappropriateamountsofrevenueandexpensesarereportedinthecompany’sincomestatement.Adjustingentriesareneededwhenevertransactionsaffecttherevenueorexpensesofmorethanoneaccountingperiod.Theseentriesassignrevenuestotheperiodinwhichtheyareearned,andexpensestotheperiodinwhichrelatedgoodsorservicesareused.01填空Thepurposeofadjustingentriesistoallocaterevenueandexpensesamongaccountingperiodsinaccordancewiththerealizationandmatchingprinciples.Theseend-of-periodentriesarenecessarybecauserevenuemaybeearnedandexpensesmaybeincurredinperiodsotherthantheperiodinwhichrelatedcashflowsarerecorded.Typesofadjustingentries:Thefourbasictypesofadjustingentriesaremadeto(1)convertassetstoexpenses,(2)convertliabilitiestorevenue,(3)accrueunpaidexpenses,and(4)accrueuncollectedrevenue.Characteristicsofadjustingentries:Keepinmindtwoimportantcharacteristicsofalladjustingentries:first,everyadjustingentryinvolvestherecognitionofeitherrevenueorexpenses.;therealsomustbeacorrespondingchangeineitherassetsorliabilities.Second,adjustingentriesarebasedontheconceptsofaccrualaccounting,notuponmonthlybillsormonth-endtransaction.ConvertingAssetstoExpensesPrepaidexpenses:assetsrepresentingadvancepaymentofthefutureaccountingperiods.Astimepasses,adjustingentriesaremadetotransfertherelatedcostsfromtheassetaccounttoanexpenseaccount.Depreciableassetsarephysicalobjectsthatretaintheirsizeandshapebuteventuallywearoutorbecomeobsolete.Theyarenotphysicallyconsumed,asareassetssuchassuppliers,butnonethelesstheireconomicusefulnessdiminishesovertime.Land,however,isnotviewedasadepreciableasset,asithasanunlimitedusefullife.Depreciation:thesystematicallocationofthecostofanassettoexpenseduringtheperiodsofitsusefullife.Usefullife:theperiodoftimethatadepreciableassetisexpectedtobeusefultothebusiness.Thisistheperiodoverwhichthecostoftheassetisallocatedtodepreciationexpenses.名词Contra-assetaccount:anaccountwithacreditbalancethatisoffsetagainstordeductedfromanassetaccounttoproducetheproperbalancesheetamountfortheasset.(1)Ithasacreditbalance(2)itisoffsetagainstanassetaccounttoproducethebookvaluefortheasset.Bookvalue(carryingvalue):thenetamountatwhichanassetappearsinfinancialstatements.Fordepreciableassets,bookvaluerepresentscostminusaccumulateddepreciation,alsocalledcarryingvalue.ConvertliabilitiestorevenueAccrueunpaidexpensesAccrueuncollectedrevenue
