Actually this isnotan entry for "accrued expenses." This is an entry for"prepaidexpenses". This is a big difference. "Prepaid expenses" are also known as "expenses paid in advance." The entry for prepaid expenses (like the one above) would be: Dr Prepaid Insurance (asset account) 10000 ...
Prepaid expenses - expenses have been paid in cash and are recorded as assets until they are used or consumed. Prepaid expenses expire(期满、到期) with the passage of time (i. e., rent or insurance) or they are consumed (i. e., supplies or depreciation). 预付费用-以现金支付的费用,在...
百度试题 结果1 题目An adjusting entry could be made for each of the following except: A. Prepaid expenses. B. Depreciation. C. Owner withdrawals. D. Unearned revenues. E. Accrued revenues. 相关知识点: 试题来源: 解析 A. B. D. E.反馈 收藏 ...
andthepurposeof adjustingentriesistoensuretherevenuesto berecordedintheperiodinwhichtheyare earnedandexpensestoberecognizedinthe periodinwhichtheyareincurred. Therearetwotypesofadjustingentries: Theprepaymentsincludeprepaidexpenses andunearnedrevenues. Theaccrualsincludeaccruedrevenuesand accruedexpenses. GeneratedbyFoxit...
5-6 Double-EntrySystem Accountingequation Assets=Liabilities+Owner’sEquity AccountType AssetsLiabilitiesOwner’sequityIncomeExpenses Debit IncreaseDecreaseDecreaseDecreaseIncrease Credit DecreaseIncreaseIncreaseIncreaseDecrease 5-7 TransactionAnalysis Now,let’sanalyzethetransactionof GeorgeRossPhotocopyCompany ...
December 31. Which of the following statements is true? A7 A). It will understate current-year net income by £8,000. B). It will have no effect on income. C). It will understate current-year expenses and overstate current-year net income by £8,000. ...
To bring the financial statements in to compliance with the accounting framework such as GAAP, adjusting entries are made at the end of the accounting period. These entries are typically made to record accrued income, accrued expenses, unearned revenue and prepaid expenses....
1. Recording portion of prepaid expenses in the month they are incurred. (Prepaid expenses are recorded using Vendors > Expense and matched to appropriate bank transaction but the amortization of prepaid expense is made through a journal entry because if I amortize it using expense, there is ...
Prepaid Expenses | Definition, Balance Sheet & Examples Compensation Costs for Share-Based Payment Arrangements Classified as Equity Share-Based Payment Arrangements: Definition & Related Concepts Compensation Costs for Share-Based Payment Arrangements Classified as Liability Intercompany Sales and Journal Entr...
Adjusting entries fall into two broad classes:accrued (meaning to grow or accumulate) items and deferred (meaning to postpone or delay) items. The entries can be further divided into accrued revenue, accrued expenses, unearned revenue and prepaid expenses which will examine further in the next les...