ACCRUAL ACCOUNTING AND ADJUSTING ENTRIES LESSON PLAN

 

Teaching Materials

• Lesson - Accrual Accounting and Adjusting Entries (see below for printable lesson)

• Overhead

• Prepared transaction examples for each section

Lesson Activity

1. Discuss the operating cycle

• Explain how account balances are not accurate from day to day

2. Introduce the concept of accrual accounting

• Use examples of transactions that cause overlap

3. Review the Revenue Recognition principle

• Use examples to explain the concept
• Discuss unearned revenue

4. Discuss purchases

• Ask for examples of asset purchases and expense purchases
• Discuss the rules for determining if a purchase is an asset or an expense

5. Discuss Accrual Accounting and Matching

• Present the two categories of expenses

6. Discuss Adjusting Entries

• Present the two types of adjusting entries
• Work through examples

7. Discuss what a mixed account is

• Work though more examples

8. Talk about the additions to the accounting process

 

Assessment/Evaluation

Have students complete worksheet. A suggested passing grade is 70% or greater.

 

 

 

Lesson Printable Materials - Worksheets

Print out the teaching lesson pages and exercise worksheets for use with this lesson:

 

ACCRUAL ACCOUNTING AND ADJUSTING ENTRIES LESSON
	Accrual Accounting and Adjusting Entries * This is a lesson on Accrual Accounting And Adjusting Entries.
ACCOUNTING WORKSHEET - STUDENT EXERCISE
	Accrual Accounting and Adjusting Entries * Student worksheet based on the above lesson.
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