Unit 3: Adjustments for Financial Reporting
By now, you should have a foundational understanding of accounting and its guiding principles and concepts. You will now need to learn how to synthesize this information, which often requires an adjusting journal entry. Before you can learn about adjusting entries, you will need to be able to distinguish between cash- and accrual-based accounting. There is some distinction between the two methods, and while some smaller business may be able to effectively use a cash basis of accounting, most organizations use an accrual basis of accounting. Subsequently, the accrual basis is the foundation on which you are learning the concepts presented in this course.
Completing this unit should take you approximately 3 hours.