Adjustments In Profit And Loss Account - SS1 Accounting Past Questions and Answers - page 1
What are accruals and deferrals?
Adjustments made to recognize revenue or expenses that have already been recorded
Adjustments made to recognize revenue or expenses that have not been recorded yet
Adjustments made to recognize revenue only
Adjustments made to recognize expenses only
What are depreciation and amortization?
Adjustments made to recognize revenue or expenses that have already been recorded
Adjustments made to recognize revenue or expenses that have not been recorded yet
Adjustments made to allocate the cost of assets over their useful lives
Adjustments made to recognize changes in the value of inventory
What are bad debts and provisions for doubtful debts?
Adjustments made to recognize revenue or expenses that have already been recorded
Adjustments made to recognize revenue or expenses that have not been recorded yet
Adjustments made to account for debts that are unlikely to be collected from customers
Adjustments made to allocate the cost of assets over their useful lives
What are inventory adjustments?
Adjustments made to recognize revenue or expenses that have already been recorded
Adjustments made to recognize revenue or expenses that have not been recorded yet
Adjustments made to account for debts that are unlikely to be collected from customers
Adjustments made to reflect changes in the value of inventory
What are income tax adjustments?
Adjustments made to recognize revenue or expenses that have already been recorded
Adjustments made to recognize revenue or expenses that have not been recorded yet
Adjustments made to account for debts that are unlikely to be collected from customers
Adjustments made to reflect changes in the company's tax liabilities
Why are adjustments made to the profit and loss account important?
Adjustments provide a more accurate picture of a company's financial performance and help to ensure that financial statements are prepared in accordance with accounting principles and regulations.
Name one example of an adjustment made to the profit and loss account.
Accruals and deferrals.