Commerce Exam > Commerce Videos > Accounting Test Time: Adjustments
Accounting Test Time: Adjustments Video Lecture - Commerce
FAQs on Accounting Test Time: Adjustments Video Lecture - Commerce
| 1. What are accounting adjustments? |  |
Ans. Accounting adjustments are changes made to the financial records of a company at the end of an accounting period to ensure that the financial statements accurately reflect the company's financial position and performance. These adjustments are necessary to account for items that were not recorded or incorrectly recorded during the regular accounting cycle.
| 2. Why are adjustments necessary in accounting? | |
Ans. Adjustments are necessary in accounting to ensure that the financial statements present a true and fair view of the company's financial position and performance. They help correct errors, allocate expenses and revenues to the correct accounting period, recognize unrecorded transactions, and comply with accounting principles and standards.
| 3. What are some common types of accounting adjustments? | |
Ans. Some common types of accounting adjustments include accruals, deferrals, depreciation, bad debt provisions, inventory adjustments, and revenue recognition adjustments. Accruals involve recognizing revenues and expenses that have been earned or incurred but not yet recorded. Deferrals involve recognizing revenues and expenses that have been recorded but not yet earned or incurred.
| 4. How are accounting adjustments recorded? | |
Ans. Accounting adjustments are typically recorded by creating adjusting journal entries. These entries are made to the relevant accounts in the general ledger to reflect the necessary changes. The adjusting journal entries should include a description of the adjustment, the accounts affected, the amounts involved, and the rationale behind the adjustment.
| 5. What is the impact of accounting adjustments on financial statements? | |
Ans. Accounting adjustments have a direct impact on the financial statements. They can change the reported amounts of assets, liabilities, revenues, and expenses, which in turn affect the company's net income, equity, and financial ratios. Adjustments ensure that the financial statements provide accurate and reliable information for decision-making by stakeholders.
Related Exams
About this Video
|
4.62/5 Rating |
|
Nov 08, 2024 Last updated |
Accounting Test Time: Adjustments for Commerce2024 is part of Commerce preparation. The notes and questions for Accounting Test Time: Adjustments
have been prepared according to the Commerce exam syllabus. Information about Accounting Test Time: Adjustments covers all important topics
for Commerce2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises
and tests below for Accounting Test Time: Adjustments.
Description
Video Lecture & Questions for Accounting Test Time: Adjustments Video Lecture - Commerce - Commerce full syllabus preparation | Free video for Commerce exam.
Information about Accounting Test Time: Adjustments
Here you can find the Accounting Test Time: Adjustments defined & explained in the simplest way possible. Besides explaining types of Accounting Test Time: Adjustments
theory, EduRev gives you an ample number of questions to practice Accounting Test Time: Adjustments tests, examples and also practice Commerce tests.
|
Explore Courses for Commerce exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Extra Questions
,Sample Paper
,video lectures
,Important questions
,Previous Year Questions with Solutions
,mock tests for examination
,MCQs
,study material
,Exam
,Accounting Test Time: Adjustments Video Lecture - Commerce
,practice quizzes
,past year papers
,Accounting Test Time: Adjustments Video Lecture - Commerce
,Accounting Test Time: Adjustments Video Lecture - Commerce
,ppt
,Summary
,Objective type Questions
,Semester Notes
,Viva Questions
,Free
,shortcuts and tricks
;
Study Accounting Test Time: Adjustments on the App
Students of Commerce can study Accounting Test Time: Adjustments alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Accounting Test Time: Adjustments,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Accounting Test Time: Adjustments is prepared as per the latest Commerce syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup