Adjusting Entries

Front

Refer to the expenses that are already incurred, used, utilized or consumed but have not yet been paid.

Back

Accrued Expenses

Front

Refer to income or revenue already earned but has not yet been collected. Options: Unearned Revenue, Accrued Income, Prepaid Income, Service Revenue

Back

Accrued Income

Front

Represent revenue or income already collected but not yet earned; also referred to as advances from customers.

Back

Unearned Revenue

Front

Represent advance payments made for expenses which have not yet been incurred, used, utilized or consumed.

Back

Prepaid Expenses

Front

The accounting concept which states that income is recognized when earned regardless of when collected and expense is recognized when incurred regardless of when paid.

Back

Accrual

Front

Refers to the allocation of the cost of the asset over its estimated useful life.

Back

Depreciation

Front

Adjusting entries are necessary to: Update and correct the accounts at the end of the period, balance the books at the end of the period, record the sales of the period, ensure the equality of the debits and credits

Back

Update and correct the accounts at the end of the period

Front

What is prepared after adjusting entries are made and posted in the ledger? Options: Income Statement, Balance Sheet, Adjusted Trial Balance, Unadjusted Trial Balance

Back

Adjusted Trial Balance

Front

The adjusting entry to record an accrued expense results in which of the following types of accounts being debited and credited? Options: Asset/Revenue, Asset/Liability, Expense/Asset, Expense/Liability

Back

Expense/Liability

Front

The adjusting entry to record an accrued revenue results in which of the following types of accounts being debited and credited? Options: Asset/Revenue, Asset/Liability, Expense/Asset, Expense/Liability

Back

Asset/Revenue