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In accounting, adjusting entries are journal entries usually made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred. The revenue recognition principle is the basis of making adjusting entries that pertain to unearned and accrued revenues under accrual-basis accounting .
A general journal entry would typically include the date of the transaction (which may be dispensed with after the first entry of the day), the names of the accounts to be debited and credited (which should be the same as the name in the chart of accounts), the amount of each debit and credit, and a summary explanation of the transaction ...
Journal entries can record unique items or recurring items such as depreciation or bond amortization. In accounting software, journal entries are usually entered using a separate module from accounts payable, which typically has its own subledger, that indirectly affects the general ledger. As a result, journal entries directly change the ...
The reason for this is to limit the number of entries in the nominal ledger: entries in the daybooks can be totalled before they are entered in the nominal ledger. If there are only a relatively small number of transactions it may be simpler instead to treat the daybooks as an integral part of the nominal ledger and thus of the double-entry system.
[4] Accounting irregularities are often committed as a means to an end. For example, assets misappropriations may be concealed by using irregular accounting entries and profit overstatements may inflate the year end bonuses to offender. Offender may falsify the company performance to conceal low productivity and enhanced stock price. [5]
One such technique is the compensation method, which consists in altering the numbers to make the calculation easier and then adjusting the result afterward. For example, instead of calculating 85 − 47 {\displaystyle 85-47} , one calculates 85 − 50 {\displaystyle 85-50} which is easier because it uses a round number.
Proof by contradiction is similar to refutation by contradiction, [4] [5] also known as proof of negation, which states that ¬P is proved as follows: The proposition to be proved is ¬P. Assume P. Derive falsehood. Conclude ¬P. In contrast, proof by contradiction proceeds as follows: The proposition to be proved is P. Assume ¬P. Derive ...
Algebra is the branch of mathematics that studies certain abstract systems, known as algebraic structures, and the manipulation of expressions within those systems. It is a generalization of arithmetic that introduces variables and algebraic operations other than the standard arithmetic operations, such as addition and multiplication.