Is this transaction need to be adjusted? I know it is not about expense and revenue. But I always think some of the transaction also need to be adjusted, for example: I purchase a $10000 worth equipment that the provider will give me that later. So the transaction be like: Advance payment (asset) 10000 Cash (asset) 10000 Now I know the equipment will be delivered in the next accounting period, and it is not a accrued reveneue or accrued expense, but someone owe me an ASSET? How should I adjust this? Accrued asset? But it is not exisited, or is it need to be adjusted?
Is this transaction need to be adjusted? I know it is not about expense and revenue. But I always think some of the transaction also need to be adjusted, for example: I purchase a $10000 worth equipment that the provider will give me that later. So the transaction be like: Advance payment (asset) 10000 Cash (asset) 10000 Now I know the equipment will be delivered in the next accounting period, and it is not a accrued reveneue or accrued expense, but someone owe me an ASSET? How should I adjust this? Accrued asset? But it is not exisited, or is it need to be adjusted?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Is this transaction need to be adjusted? I know it is not about expense and revenue. But I always think some of the transaction also need to be adjusted, for example:
I purchase a $10000 worth equipment that the provider will give me that later. So the transaction be like:
Advance payment (asset) 10000
Cash (asset) 10000
Now I know the equipment will be delivered in the next accounting period, and it is not a accrued reveneue or accrued expense, but someone owe me an ASSET? How should I adjust this? Accrued asset? But it is not exisited, or is it need to be adjusted?
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