Learning Objectives 1. What are accruals and deferrals and how do they affect the financial statements? 2. What are adjustments, when are they made

Learning Objectives 1. What are accruals and deferrals and how do they affect the financial statements? 2. What are adjustments, when are they made and why are they necessary? 3. How do you construct the basic financial statements from a given set of transactions that include accruals and deferrals?