Why does the recording of adjusting entries require a bet-ter understanding of the concepts of accrual accounting than does the recording of routine revenue and expense transac-tions occurring throughout the period?

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: Define a change in estimate and provide an illustration. When is a change in accounting estimate…

A:

Q: What will be the result of prepayment of rent expense in adjusting entry?

A: The prepayment of rent expense is an asset for the company because this payment is made with respect…

Q: If the income statement error is discovered in a subsequent accounting period, what action is to be…

A: Solution Nominal account is a general ledger account pertaining to all income , expenses , losses…

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: 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: Why does the accruals that involve internal transactions require adjusting entries?

A: Adjusting entries are internal transactions that update account balances in accordance with accrual…

Q: Failure to prepare an adjusting entry at the end of the period to record an accured expense would…

A: A successful adjusting entry at the end of the period to record an accrued expense would: Increase…

Q: What is the major difference between the unadjusted trial balance and the adjusted trial balance?…

A: An adjusted trial balance is made after all changing or adjusting entries have been posted into the…

Q: What is the required adjusting entry (show journal entry) for accrued liabilities and for accrued…

A: Accrued Liabilities: Expenses of business which are due but not paid are accrued liabilities. They…

Q: Which of the following is (are) the proper time period(s) to record the effects of a change in…

A: Change in accounting estimate means making changes in the estimated amount of assets and liabilities…

Q: Which is the proper time period to record the effect of a change in accounting estimated? A.…

A: Accounting is the process of work of keeping financial accounts. It is a process of recording…

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: What transaction requires an adjusting entry debit to unearned revenue

A: Adjusting Entries: Adjusting entries are those which are recorded at the end of the accounting year.…

Q: Which column on a worksheet contain the adjusted balances for the revenue and expense accounts?

A: Trial balance:   It is a list of all ledger prepared by the company. It records the closing balance…

Q: The ending balance in the account Deferred Revenues (or Unearned Fees) * ?should report which of the…

A: Deferred revenue seems to be payments from a consumer for upcoming products or services. Since the…

Q: TRUE OR FALSE   The Accrual Method (basis) of accounting records income in the period earned and…

A: Under the Accrual Method, a transaction relating to revenue and expense is recognized when it is…

Q: True or false  if a balance sheet is prepared between the date of declaration and date of payment,…

A: Balance sheet: Balance Sheet is one of the financial statements that summarize the assets, the…

Q: Would unearned Revenue be included in post closing trial balance?

A: Unearned Revenue is the amount received from customers without rendering services. It is like an…

Q: If the income statement error is discovered in the year of error, what action is to be done by the…

A: An error in income statement refers to posting an expense in the books in the wrong account such as…

Q: Why is it necessary to record the adjusting entries in the preparation of final accounts?

A: Adjusting Entries: Adjusting Entries are Entries which are made At Year End to record the Pending…

Q: Indicate how prior period adjustments should be reported on the financial statements presented only…

A: Prior Period Adjustments Prior period adjustments refer to the error that is caused due to any…

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: what would happen to the income statement's accounts if the adjusting entries are omitted. what…

A: The adjusting entries have the closing balances of the transactions. Income statement would show the…

Q: What is the total net effect on income (overstated or understated) if the adjusting entriesare not…

A:

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: ous period’s financial statements are called?

A: It is common to occur errors in the financial statements, but whenever it is found that errors have…

Q: Reversing entries are made at the beginning of the new accounting period in order to transfer all…

A: Revising Entries: It is possible to make an accounting period-ending journal entry that reverses…

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: 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: Based upon the balances above, what net adjustment would be made to Retained Earnings due to closing…

A: Retained earnings refers to that portion of the after-tax profit of the company which the company…

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: Which of the following comes first in worksheet preparation? A. Compute profit or loss as the…

A: Worksheet helpful in evaluating weather the accounting entries are posted correctly in their…

Q: If a payment of a deferred expense was recorded under the alternative treatment, what account would…

A: Deferred expense:   Advance payment for future expenses is called as prepaid expenses. These prepaid…

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: If an adjustment includes an entry to a payable or receivable account, which type of adjustment is…

A: Some examples of adjusting entries including payable or receivable account are:   1. Rent expense…

Q: The payment of supplier's account is debited to accounts receivable. What is the effect of the error…

A: Ans. The error while passing journal entries leads to overstated or understate of profits.

Q: If an adjusting entry is not made to accrue expenses, then the balance sheet * ?liabilities will be…

A: Lets understand the basics. Adjusting entry is passed to record the correct amount of revenue and…

Q: Please help with the following question, need accurate and full answer.   What is the effect on…

A: Journal entries means the book of prime entry incuding debit and credit item. Adjusting entry means…

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…