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Principles of Financial Accounting Canadian Edition Answers Chapter 4 Form

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welcome to the lecture for chapter 4 if you have not read this chapter yet I would highly recommend you read it before we go through these slides there is a lot to take in but since there is so much to go through again i' highly recommend you read the the chapter before we go through these slides okay so remember in the previous chapter we talked about only recognizing revenues and expenses when they were actually earned or incurred so for example we paid for an expense ahead of time like prepaid Insurance um or we took cash from a customer before the service had actually um been performed so because we took the cash beforehand we had to create a liability called unearned Revenue in this chapter we're introduced to adjustments and these adjustments are made to the accounting records at the end of the period to ensure assets and liabilities are reported at appropriate amounts and these adjustments also ensure that the related revenues and expenses are reported in the pro

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