Question and answer
What are adjusting entries? Why are these necessary? What are accruals?
In accounting/accountancy, adjusting entries are journal entries usually made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred. [ The revenue recognition principle is the basis of making adjusting entries that pertain to unearned and accrued revenues under accrual-basis accounting. They are sometimes called Balance Day
adjustments because they are made on balance day. ]
Expert answered|Fanboy|Points 2371|
Question|Rated good
Asked 9/15/2012 8:25:21 PM
0 Answers/Comments
Get an answer
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
Questions asked by the same visitor
What is the revenue recognition principle?
Weegy: he revenue recognition principle is a cornerstone of accrual accounting together with matching principle. They both determine the accounting period, in which revenues and expenses are recognized. [ According to the principle, revenues are recognized when they are realised or realisable, and are earned (usually when goods are transferred or services rendered), no matter when cash is received. In cash accounting – in contrast – revenues are recognized when cash is received no matter when goods or services are sold. ] (More)
Question
Expert Answered
Asked 9/14/2012 11:16:26 AM
0 Answers/Comments
Provide examples of accruals.
Weegy: example is the accrual of utilities expense. Utilities provide the service (gas, electric, telephone) and then bill for the service they provided based on some type of metering. [ As a result the company will incur the utility expense before it receives a bill and before the accounting period ends. Hence, an accrual-type adjusting journal entry must be made in order to properly report the correct amount of utilities expenses on the current period's income statement and the correct amount of liabilities on the balance sheet. ] (More)
Question
Expert Answered
Asked 9/15/2012 8:29:31 PM
0 Answers/Comments
What is the revenue recognition principle? What is the expense recognition principle?
Weegy: The revenue recognition principle makes it so that the revenue a company earns is recorded in the same accounting period in which the product or service was sold. The expense recognition principle says that the expense will follow the revenue. [ Basically, whatever money was spent in producing the revenue will be accounted for in the same period as the revenue earned. Most argue that the principles, if followed, will show a more accurate state of being for the company. Others argue that it makes the statements harder to read and that cash basis accounting is better.The revenue recognition principle is the process where a company records any financial event in the accounting period that it is earned. When a service is performed or a product is ordered it is listed as revenue in the period that the action of the event took place regardless of when the actual payment for the service or product is received. The expense recognition principle simply lets the expenses follow the revenues. Revenue recognition and expense recognition work together to provide the actionable events of a given accounting period. When expenses make their contribution to revenues is the point when expense recognition takes place, regardless of when the expense is paid. This is also known as the matching principle which shows that efforts are equal to results. These principles are important to a financial reporting period because it stops a company from overstating revenues and instead requires them to show expenses in a realistic and time applied manner. When an applied to a cash-basis accounting process the picture may look simpler to understand but it can be misleading to investors because the expense can be shown in a later quarter which makes the company look healthier than it is in reality. ] (More)
Question
Expert Answered
Asked 9/15/2012 8:14:37 PM
0 Answers/Comments
17,626,597 questions answered
Popular Conversations
Which of the following is correct? A. The purine G bonds with the ...
Weegy: B. The purine C bonds with the pyrimidine G. User: The purines in DNA are A. thymine and ...
10/1/2014 2:38:30 PM| 3 Answers
antonym of prevented ...
10/1/2014 9:05:38 AM| 3 Answers
Simplify the expression. (3x - 1)(x^2 + 2x - 4) User: 3x+2(x+5) ...
Weegy: 1+tan^2(x) = sec^2(x) 1+cot^2(x) = csc^2(x) (1+tan^2(x)) / (1+cot^2(x) = sec^2(x) / csc^2(x) = ...
10/1/2014 1:46:20 AM| 3 Answers
The pressure of ocean water increases as depth increases. User: The ...
Weegy: It originates in the Gulf of Mexico and, as the Florida Current, passes through the Straits of Florida and then ...
9/30/2014 6:27:02 AM| 3 Answers
The densest ocean water is generally found a. in the surface ...
Weegy: A. in the surface zone User: In which zone is ocean temperature most affected by the weather? a. transition ...
9/30/2014 6:07:25 AM| 3 Answers
In ics, the members of the command staff assume the title of?
Weegy: in ICS, the members of the command staff assume what title of leader User: The ability to communicate within ...
10/1/2014 8:14:10 PM| 2 Answers
What is planter flexion?
10/1/2014 1:37:43 PM| 2 Answers
what is weegy
Weegy: Weegy also has a montly point contest. [ The experts with the most points per month wins extra money! I haven't ...
10/1/2014 12:19:15 PM| 2 Answers
Who is Harry Bailly?
10/1/2014 11:54:52 AM| 2 Answers
What is an overdraft?
10/1/2014 11:23:22 AM| 2 Answers
Weegy Stuff
S
L
1
L
P
C
1
P
C
1
Points 92 [Total 9574]| Ratings 0| Comments 92| Invitations 0|Offline
S
L
1
1
1
1
L
1
L
Points 53 [Total 12428]| Ratings 0| Comments 53| Invitations 0|Offline
S
1
L
1
L
P
P
L
Points 41 [Total 12270]| Ratings 0| Comments 41| Invitations 0|Offline
S
1
L
L
Points 35 [Total 5829]| Ratings 0| Comments 35| Invitations 0|Offline
S
P
C
L
P
L
1
Points 16 [Total 6250]| Ratings 0| Comments 16| Invitations 0|Offline
S
Points 10 [Total 10]| Ratings 1| Comments 0| Invitations 0|Offline
S
1
L
1
Points 10 [Total 3354]| Ratings 1| Comments 0| Invitations 0|Offline
S
Points 2 [Total 37]| Ratings 0| Comments 2| Invitations 0|Offline
S
Points 1 [Total 214]| Ratings 0| Comments 1| Invitations 0|Offline
S
1
L
Points 1 [Total 3077]| Ratings 0| Comments 1| Invitations 0|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2014 Purple Inc.