At the end of the month, the adjusting journal entry to record the use of supplies should include: A) A debit to supplies inventory and a credit to expenses. B) A credit to supplies inventory and a debit to expenses. C) A debit to supplies inventory and a credit to revenue. D) A credit to supplies inventory and a debit to cash.
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
At the end of the month, the
A) A debit to supplies inventory and a credit to expenses.
B) A credit to supplies inventory and a debit to expenses.
C) A debit to supplies inventory and a credit to revenue.
D) A credit to supplies inventory and a debit to cash.-
One major difference between deferral and accrual adjustments is:
A) deferral adjustments involve previously recorded transactions and accruals involve new transactions.
B) deferral adjustments are made after taxes and accrual adjustments are made before taxes.
C) deferral adjustments are made annually and accrual adjustments are made monthly.
D) deferral adjustments are influenced by estimates of future events and accrual adjustments are not.
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One major difference between deferral and accrual adjustments is:
A) accrual adjustments are influenced by estimates of future events and deferral adjustments are not.
B) deferral adjustments are made before taxes and accrual adjustments are made after taxes.
C) deferral adjustments are made monthly and accrual adjustments are made annually.
D) accounts affected by an accrual adjustment always go in the same direction (i.e., both accounts are increased or both accounts are decreased) and accounts affected by a deferral adjustment always go in opposite directions
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