Chapter 3: The Adjusting Process (Continued)1. Please explain what accrued expenses are and let us know why these adjustments are necessary. Please provide an example of an adjusting entry for an accrued expense.2. Please explain what accrued revenues are and let us know why these adjustments are necessary. Please provide an example of an adjusting entry for accrued revenues. 3. Please explain what an Unearned Revenue account is and why an adjustment may be necessary for Unearned Revenue. Please provide an example of an adjusting entry for Unearned Revenue.

Q: The key accounting considerations relating to accounts payable are: Determining their existence and…

A: Accounts payable is a current liability.  As per IAS 1, Presentation of financial statements,…

Q: For each of the following accounts, identify if it is nominal/temporary or real/permanent: Fees…

A: Permanent accounts are those accounts whose balance at the end of a given period (generally at the…

Q: Explain a bill-and-hold sale. When is revenue recognizedin these situations?

A: When the buyer is not ready to take the delivery but accepts the title and the billing, then it is…

Q: Accrual basis accounting is defined as: (Check all that apply.) an accounting system that uses the…

A: Accounting: It implies a process of maintaining a company's accounts by recording the financial or…

Q: Why does the recording of adjusting entries require a bet-ter understanding of the concepts of…

A: Routine revenue and expense transactions are transactions of normal sales, purchases or occurrence…

Q: According to accruals rules, when a service is performed, the revenue should be recognized…

A: Solution- Accrual accounting is an accounting method whereby revenue and expenses are recorded in…

Q: The adjusting entry to take up accrued expenses is recorded in the: (A purchases journal B general…

A: Adjusting entries are those journal entries which are passed at the end of accounting period in…

Q: True or False The purpose of adjusting entries is to assign appropriate portion of revenue and…

A: The adjustment entries are prepared at year end to adjust the revenue and expenses of the current…

Q: When do you prepare the Adjusted Trial Balance? After the Adjusted trial balance has been prepared,…

A: The trial balance that contains adjustments is an internal record of the firm that contains all the…

Q: Fill in the Blank Question The matching principle aims to record (expenses/assets/liabilities) in…

A: Principle of accounting means the fundamental of accounting system which is followed while preparing…

Q: Provide an example of an accrued revenue. Describe the adjusting entry associated with an accrued…

A: Accrued revenue: It can be defined as the revenue that has been earned by the company against the…

Q: What is meant by the term unearned revenue? Where should an unearned revenue account appear in the…

A: Revenue: It refers to the amount earned by a business from selling its goods or services to the…

Q: Which of the following revenue whose recognition is put off into the future even though payment has…

A: Revenue is the total proceeds from sale of goods or services in the business. This is an important…

Q: Exercise 2-6 Your analysis of Accounts Receivable carried at P2,406,750 on Dec. 31, 2019 shows the…

A:

Q: Adjusting entries can be classified as Select one: a. postponements and advances. b. deferrals and…

A: Adjusting entry are recorded at the end of the year after certain events have occured. Adjusting…

Q: Deferred revenues represent liabilities recorded when cash is received from customers in advance of…

A: Adjusting entries:Adjusting entries are the journal entries, which are recorded at the end of the…

Q: Which of the following is an example of a prepaid expense? Please explain with full explanation. a.…

A: A prepaid expense is an asset for which we have paid in advance and for which the benefit shall be…

Q: Describe the Fundamental Issues Related to Recognizing Revenue.

A: Revenue Recognition: Revenue recognition refers to the principle which tells about the conditions…

Q: revenues are and let us know why these adjustments are necessary.  Please provide an example of an…

A: Accrued Revenue : Accrued Revenue is a sale that has been recognised by the seller but which has not…

Q: Which of the following items is generally a Schedule M-1 adjustment? a.Rent payments b.Gross sales…

A: An essential part of a company's tax return is the Schedule M-1 Adjustment. It is used to reconcile…

Q: Prepare adjusting entries for deferral of revenues.

A: All expenses and incomes connected to the specific financial year, whether incurred or not, and…

Q: What is the purpose of the other adjustments account (OAA)? What types of items increase it or…

A: Answer: As per given - What is the purpose of the accumulated adjustments account (AAA)? What types…

Q: What adjusting entries would you pass in respect of income received in advance, outstanding…

A: Adjusting Entries:- Adjusting Entries referred as those entries, that are occurred at the end of…

Q: Does the adjusting entry to record an accrued revenue increase assets?

A: The accrued revenue is the revenue earned but not received yet. The accrued revenue is reported as…

Q: Which accounting principle requires that bad debts expense be recognized in the same period as the…

A: Bad debt expense is the amount of money a business recognizes as a loss due to customers who are…

Q: What is an accrued revenue? Provide an example.

A: Revenue refers to the income that is received by a business from its business operations and…

Q: On January 1, 2020, Pharoah Corporation purchased 20% of the outstanding voting shares in WLT…

A: If the investment has significant influence then all earning are debited to investment account and…

Q: accruals

A: Under Accrual concept, revenue is recognized when it is earned and expense is recognized when it is…

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.