Académique Documents
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Thirteenth Edition
Weygandt Kimmel Kieso
Chapter 3
Generally a
ALTERNATIVE TERMINOLOGY
• month, The time period assumption
is also called the
• quarter, or periodicity assumption.
• year.
LO 1 Copyright ©2019 John Wiley & Son, Inc. 4
Fiscal and Calendar Years
• Monthly and quarterly time periods are called
interim periods
• Most large companies must prepare both quarterly
and annual financial statements
• Fiscal Year = Accounting time period that is one year
in length
• Calendar Year = January 1 to December 31
ILLUSTRATION 3.2
Categories of adjusting entries
Adjusted
Financial Closing Post-Closing
Trial
Balance Statements Entries Trial Balance
Asset Expense
Unadjusted Credit Debit
Balance Adjusting Adjusting
Entry (-) Entry (+)
Liability Revenue
Debit Unadjusted Credit
Adjusting Balance Adjusting
Entry (-) Entry (+)
Adjusted
Financial Closing Post-Closing
Trial
Balance Statements Entries Trial Balance
Asset Revenue
Debit Credit
Adjusting Adjusting
Entry (+) Entry (+)
Expense Liability
Debit Credit
Adjusting Adjusting
Entry (+) Entry (+)
Trial Adjusting
Analyze Journalize Post
Balance Entries
Owner’s Statement
Income
Equity of Financial
Statement
Statement Position
ILLUSTRATION 3B.2