1.
Unearned income is shown in the balance sheet as a
.
2.
The expired cost of any fixed asset means
.
3.
Interest received in advance is a liability that is known as
.
4.
Income received in advance is known as
.
5.
Prepaid rent is categorized as a
.
6.
are expenses that have been incurred but will not be paid until the end of the accounting period.
7.
Revenue earned but not received until the end of the accounting period is known as
.
8.
Expenses paid in advance are known as
.
9.
Suppose that salaries amounting to $600 are outstanding until the end of the accounting period. The salaries expense account will be debited and the
account will be credited when making an adjusting entry for this transaction.
10.
A trial balance prepared after considering the effect of adjusting entries is known as an
.
You may also check: An adjusting entry is made to correct an error or imbalance in a company's financial records, while a regular journal entry records everyday transactions. Adjusting Entries are necessary to ensure that a company's Financial Statements accurately reflect its financial position. Without Adjusting Entries, Financial Statements would be inaccurate and potentially misleading. Common examples of Adjusting Entries include Depreciation, accruals, and deferrals. The process for making an adjusting entry is generally as follows: determine the adjustment amount and then record the adjustment in a journal entry. Post the journal entry to the appropriate accounts in the General Ledger, and lastly, reconcile the accounts affected by the adjustment. An adjusting Trial Balance includes only those affected by adjustments, while a regular Trial Balance consists of all of the accounts in a company's General Ledger. True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists. True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics. To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.
Adjusting Entries: Fill In the Blanks FAQs
Adjusting Entries: Fill In the Blanks
