Acc 290 Week 3 Learning Team Reflection Essay Example
Team A Week Three Reflection
ACC290
May 13, 2013
Team A Week Three Reflection
This past week, our team has been going over and reflecting on four main objectives. These main objectives are differentiating between accrual basis and cash basis accounting, the process of creating adjusting entries, and adjusted trial balances. We will also collectively discuss our opinions of what would be the most important skills learned in an accounting position. In accordance to week three’s objectives, I would have to say that everything that we have gone over is essential to our success in future accounting positions, however, we feel that the most important skill is to be able to accurately record the inflow (revenue earned) and the outflow (expenses: utilities, etc.) of monies.
Accural vs. Cash Basis Accounting According to the readings, accrual basis accounting is defined as in which companies record, in the periods in which the events occur, transactions that change a company's financial statements, even if cash was not exchanged. In other words, it means that recorded or un-recorded, all transactions are taken and projected into the overall balance. Cash Basis Accounting basis in which a company records revenue only when it receives cash, and an expense only when it pays out cash. This means that this means of accounting, only takes accountability of the physical cash that is at a physical location. The differences, Accural is all transactions whether recorded, unrecorded, or projected. Cash is the physical monies on hand at a physical location and does not record earnings until payments are actually made.
Create adjusting entries
This week we have been given a lot of practice on how to create adjusting entries to financial documents and internal financial “memos” (such as balance sheets). There are five types of adjusting entries:
Accrued revenues – making adjustments to a service that has been performed but not billed. 1. Accrued expenses –
ACC290
May 13, 2013
Team A Week Three Reflection
This past week, our team has been going over and reflecting on four main objectives. These main objectives are differentiating between accrual basis and cash basis accounting, the process of creating adjusting entries, and adjusted trial balances. We will also collectively discuss our opinions of what would be the most important skills learned in an accounting position. In accordance to week three’s objectives, I would have to say that everything that we have gone over is essential to our success in future accounting positions, however, we feel that the most important skill is to be able to accurately record the inflow (revenue earned) and the outflow (expenses: utilities, etc.) of monies.
Accural vs. Cash Basis Accounting According to the readings, accrual basis accounting is defined as in which companies record, in the periods in which the events occur, transactions that change a company's financial statements, even if cash was not exchanged. In other words, it means that recorded or un-recorded, all transactions are taken and projected into the overall balance. Cash Basis Accounting basis in which a company records revenue only when it receives cash, and an expense only when it pays out cash. This means that this means of accounting, only takes accountability of the physical cash that is at a physical location. The differences, Accural is all transactions whether recorded, unrecorded, or projected. Cash is the physical monies on hand at a physical location and does not record earnings until payments are actually made.
Create adjusting entries
This week we have been given a lot of practice on how to create adjusting entries to financial documents and internal financial “memos” (such as balance sheets). There are five types of adjusting entries:
Accrued revenues – making adjustments to a service that has been performed but not billed. 1. Accrued expenses –