If an adjustment includes an entry to a payable or receivable account, which type of adjustment is it? a. Estimate b. Accruals c. Deferrals d. Provision

Q: Which of the following accounts would likely be included in an accrual adjusting entry?…

A: Adjustment entries are passed at the end of the accounting period to adjust the accounts on the…

Q: When you need to adjust the allowance what is the accounting entry you would create assuming you use…

A: Accrual method of accounting is a method which states that income and expense should be recorded…

Q: Which of the following accounts is considered a permanent or real account?A. Interest RevenueB.…

A: Financial Statements: Financial statements are an assortment of outline-level reports about an…

Q: Which of the following will be included in the adjusting entry to accrue interest * ?income or…

A: Accrue interest income is the interest earned but not received.

Q: t is the required adjusting entry for accrued liabilities and for accrued receivables? What is the…

A: An accrued liability occurs when you gain a debt, or incur an expense that you have not paid. For…

Q: Why does the recording of adjusting entries require a bet-ter understanding of the concepts of…

A: Routine revenue and expense transactions are transactions of normal sales, purchases or occurrence…

Q: There are two basic types of adjusting entries—prepayments and accruals. Describe each in terms of…

A: Adjusting entries:   Adjusting entries are the journal entries that are entered in the books of…

Q: Explain the relationships between adjustments and thefollowing Chapter 3 concepts: ( a ) the time…

A: Given, The relationships between adjustments is described as below, (a) the time period assumption,…

Q: Which of the following accounts was created as the result of an accrual for expenses?  Group of…

A: Lets start with the basic understanding. Accrual for expense is a liability which is incur because…

Q: Provide an example of an accrued revenue. Describe the adjusting entry associated with an accrued…

A: Accrued revenue: It can be defined as the revenue that has been earned by the company against the…

Q: Indicate whether each statement best describes the allowance (A) method or the direct write-off…

A: Allowance method:   It is a method for accounting for uncollectible receivables, where uncollectible…

Q: If the unearned interest is credited in the adjusting entry, which of the following will be…

A: An Unearned interest refers to an interest income collected by a lending institution before they…

Q: Which of the following items represents a deferral?A. Prepaid insuranceB. Wages payableC. Fees…

A: In accounting, deferral means to defer or delay recognizing certain revenues or expenses…

Q: Adjusting entries can be classified as Select one: a. postponements and advances. b. deferrals and…

A: Adjusting entry are recorded at the end of the year after certain events have occured. Adjusting…

Q: Baker Company includes the following balance sheet accounts. Identify the accounts that might…

A: Account adjustments refer to the adjusting entries that are the result of internal events. Internal…

Q: record estimated uncollectible accounts using the allowance method, the adjusting entry would be a ?

A: The allowance for doubtful accounts is created to record estimated bad debt expense for the period.

Q: The adjusting entry to record accrued interest expense is: Debit Interest expense and credit…

A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized…

Q: Record the adjustment for uncollectible accounts.

A: Uncollectable accounts or Bad debts: Uncollectable accounts are the customer whose payment is…

Q: Which of the following journals would correctly post an adjustment for deferred (prepaid) income?…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: A change in accounting policy requires what kind of adjustment to the financial statements? A.…

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

Q: Prepare an adjust trial balance fro: following account information, and considering the adjustment…

A: Adjusted Trial Balance: Adjusted Trial balance is the last step before financial statements are…

Q: Which option is not a short term adjustment? A. Prepaid expense B. Depreciation C. Income…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: What is the effect of the error in the net income of the current period and in subsequent period?

A: Payment made to supplier is debited for decrease in balance as accounts payable which is liability…

Q: . Which of the following adjusting entries cannot be reversed? a. An adjusting entry to accrue an…

A: Solution: Adjusting entries are prepared at the end of accounting period adjust the books to record…

Q: Indicate whether each statement best describes the allowance (A) method or the direct write-off…

A: Under the direct write off method the bad debts is treated as charged to expenses when it is clear…

Q: Adjustment entries for prepaid expenses must include   A liability account in the credit side   An…

A: Adjusting entry: It can be defined as the journal entry that is recorded at the closing of the…

Q: Why are adjusting entries necessary under accrual-basis accounting?

A: The accrual basis of accounting states that expenses are matched with the related revenues . And are…

Q: The collection of an account that had been previously written off under the allowance method of…

A: Uncollectible accounts are those accounts receivables to whom it is estimated that amount will not…

Q: Every adjusting entry involves the recognition of either revenue or an expense

A: Adjusting entries are prepared at the end of the accounting period in order to ensure the accrual…

Q: Rent paid in advance can be categorized as a. Deferred expense (Prepaid expense) b. Accrued revenue…

A: Rent paid in advance is a prepaid expense which means this expense hasn't been accrued yet.

Q: a. What is the difference between permanent and temporary accounts? b. Calculate ROA from the…

A: Permanent Accounts : Cash Account, Equipment account,  share capital and  Retained earnings account…

Q: transactions that require an adjusting entry (debit) to unearned revenue?

A: Concept introduction:  Adjusting entries are required to adjust the accounts according to the…

Q: 1.Which of the following would be the correct adjustment if there was an increase in an accrual?…

A: Answer: 1 Option (c) The amount of the increase is included as an expense (a debit) on the income…

Q: What is the proper classification of Prepaid Expense account? a.) Current Asset b.) Current…

A: The correct option with proper explanation are as follows. The expenses which is paid in advance is…

Q: Explain an example to record the adjusting entry for accrued revenue.

A: Adjusting Entry: An adjusting entry is a journal entry passed at the end of a financial period to…

Q: The accounting concept that supports reporting revenues in the period in which they are earned is…

A: Explanation: 1. Revenue recognition concept: As per the revenue recognition concept, revenues are…

Q: a. Compute the correct amount of accounts receivable. b. Prepare one compound entry to adjust the…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Revenue or expenditure is recognized for every adjustment entry.

A: This question deals with revenue or expenditure is recognized for every adjustment entry.

Q: the unearned interest is credited in the adjusting entry, which of teh following will be affected?…

A: When Unearned Interest is credited, the following adjustment entry will be made: Account Titles…

Q: amount should the account payable be adjusted

A: Purchases at net amount = Purchases - Purchase discount - Purchase returns.

Q: Identify which type of adjustme A. Rent paid in advance for us B. Cash received in advance f C.…

A: The following transactions are categorized with the appropriate answer

Q: Which of the following pairs increase with credit entries?A. supplies and retained earningsB. rent…

A: There are two sides of account, used in accounting. One is debit side and other is credit side. All…

Q: A prior period adjustment relates to the income of pastaccounting periods. Explain how such an item…

A: Financial statements contain the accounting information of an organisation which is used by its…

Q: Which of the following accounts would probably need to be adjusted at year O Notes Payable Supplies…

A: Solution: Broadly there are 4 type of accounts that requires adjustment at year end. They are…

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.