ACC 290 Week 3

Individual Week Three Problems and Exercises

Resource: Ch. 4 of Financial Accounting

Complete Exercise BE4-1.

Complete Problems 4-2A and 4-3A.

Answer the following summary question: Commercial accounting and generally accepted accounting principles, generally prescribe the accrual basis of accounting over the cash basis. Describe both bases of accounting and explain the differences.

Submit as either a Microsoft Excel or Word document

Learning Team Learning Team Reflection

Discuss the objectives for Week Two. What do you think will be the most important of the skills learned when you are in an accounting position?

Differentiate between accrual basis and cash basis accounting.

Create adjusting entries.

Prepare an adjusted trial balance.

Write a 350- to 500-word summary of your Learning Teams discussion.

Discussion Questions

What are the steps in completing the accounting cycle? How do the different steps affect the financial statements? What is the effect on the financial statements of missing a step when completing the accounting cycle?

What are the four closing journal entries? Why are they necessary? What are reversing entries? Why are they used?

How has automation aided the preparation, accuracy, and use of the financial statement worksheet?