ADJUSTING ENTRIES Flashcards
1
Q
4th step of the accounting process
A
ADJUSTING ENTRIES
2
Q
Prepared at the end of the accounting period after preparing the trial balance
A
ADJUSTING ENTRIES
3
Q
To update account balances
A
ADJUSTING ENTRIES
4
Q
To properly match revenues and expenses during the period
A
ADJUSTING ENTRIES
5
Q
3 Usual Items for adjusting entries
A
Accruals
Deferrals
Provision for depreciation expense
6
Q
Two kinds of accruals
A
accrued income
accrued expense
7
Q
Two kinds of deferrals
A
pre-collected income
prepaid expenses
8
Q
income already earned but not yet collected
A
accrued income
9
Q
expense already incurred but not yet paid
A
accrued expense
10
Q
income already collected but not yet earned
A
pre-collected income
11
Q
expense already paid but not yet incurred
A
prepaid expenses
