F1M8 Flashcards
1
Q
Deferred Revenues
A
cash is received before revenue is earned
2
Q
Deferred Expenses
A
cash is paid before expense is incurred
3
Q
Accrued Revenue
A
Revenue is earned before cash is received
4
Q
Accrued Expenses
A
Expense is incurred before cash is paid
5
Q
Error corrections within the same year
A
simply correct with an adjusting entry
6
Q
Rules for adjusting entry
A
must be recorded before the end of the year
never involve cash account
they will hit one IS account and one BS account
