Adjusting Entries Flashcards
1
Q
What is accrued expenses?
A
Expenses that aren’t paid or recorded.
2
Q
What is adjusting entries?
A
Fixing errors and adding missing transactions.
3
Q
What is accrued revenue?
A
Revenue that hasn’t been paid or recorded.
4
Q
What is the entry for pre-paid expense?
A
Debit the current asset and credit Bank.
5
Q
What is the entry for unearned revenue?
A
Credit the current liability and debit Bank.
6
Q
How do you calculate depreciation?
A
Annual depreciation = Value of asset x useful life (in years).
