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This record typically includes the name of each general ledger account. The trial balance distinguishes between those balances based on whether the residual amount is debit or credit. It categorizes those amounts into two categories with the same names, debit, and credit. These next steps in the accounting cycle are covered in The Adjustment Process. …

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Content The Statement of Cash Flows What is the Difference Between US GAAP vs. IFRS? Investment Property Streamlining Your Tax Journey: SMSF Accounting and Prior Year Tax Returns Explained The difference between GAAP and IFRS What are the differences between GAAP and IFRS? Under IFRS, a firm can choose its own policy for classifying interest …

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This interest should be recorded as of December 31 with an accrual adjusting entry that debits Interest Receivable and credits Interest Income. The accrual of an expense or an expense accrual refers to the reporting of an expense and the related liability in an accounting period that is prior to the period when the amount …

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Capital budgeting is a process that businesses use to evaluate potential major projects or investments. Building a new plant or taking a large stake in an outside venture are examples of initiatives that typically require capital budgeting before they are approved or rejected by management. The company must first determine its needs by deciding what …

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