**TI82** TxtView file generated by CalcText - KouriĈ ·CHAPx4x1·µ˙cpta chap 4.1Accounting cycle - Adjustments - Ensure that revenue recognition & expense recognition principles are followed - Necessary because the trial balance may not contain up-to-date and complete data - Include income statement and statement of financial position 1) DEFFERALS (montants différés) a) Prepaid expenses Expenses paid in cash and recorded as assets before they are used or consumed b) Unearned revenues: recettes non gagnées Companies reveice cash before services are performed (rent, magazine subscription…) 2) ACCRUAL a) Accrued revenues: produit net à recevoir Revenues earned but not yet received in cash or recorded Revenues for services performed but not yet recorded at the statement date b) Accrued expenses: charges à payer Expenses incurred but not yet paid in cash or received (interest, taxes, salaries) DEFERRALS : costs or revenues that are recognized at a date later than the point when cash was originally exchanged On a les services avant d’avoir les sous ou de les donner ACCRUAL: Revenues or expenses that should be recognized in the current period before cash is received or paid On a les sous avant les services. ˙¨