ACC 201 WORKSHOP FIVE ACCRUED EXPENSES HANDOUT FOR 5.4 DROPBOX
Download Accrued Expenses Handout for 5.4 Dropbox Review the questions below. As you watch the video Accrued Expenses, take notes and answer the following questions for Dropbox submission: Question 1. Why would accrued expenses need to be recorded as a liability at the end of the period? 2.
When making adjusting entries, are there other accrued expenses besides wages payable in a typical business that should be recorded?
3. What are two effects on the income statements that would result if accrued expenses were not recorded?
4. If this were a sole proprietorship, would the owner’s equity be overstated or under-stated? Why? 5. If you worked as a loan officer for a bank and were considering making a loan to a company whose books reflected no year-end accrued expenses such as wages payable, what questions might you ask the company’s accountant?