Accounting for Deferrals

1. Provide a more complete explanation of the accrual accounting system.

2. Identify business events that involve deferrals.

3. Record deferral events under an accounting equation.

4. Prepare financial statements that include cash, accrual, and deferral events.

5. Explain how deferral events affect the financial statements.

6. Explain the effects of end-of-period adjustments related to deferrals.

7. Distinguish between a cost that is an asset and a cost that is an expense.

8. Distinguish gains and losses from revenues and expenses.

9. Analyze financial statements and make meaningful comparisons between companies by using a debt to assets ratio, a return on assets ratio, and a return on equity ratio.

10. Record deferral events in a financial statements model.