Which of the following accounts would likely be included in an accrual adjusting entry?     Insurance Expense     Prepaid Rent     Supply Expense     Unearned Rent

Q: When you need to adjust the allowance what is the accounting entry you would create assuming you use…

A: Accrual method of accounting is a method which states that income and expense should be recorded…

Q: Which of the following will be included in the adjusting entry to accrue interest * ?income or…

A: Accrue interest income is the interest earned but not received.

Q: effect of purchase on account on current rattion

A: Current Ratio (CR): It is one of the liquidity ratios which measures the company’s ability to pay…

Q: What is rent receivables listed as

A: rent is made by the tenant to the owner. different is paid generally on the monthly basis but there…

Q: When we have established an allowance for uncollectible accounts, how do we write off an account…

A: Account receivable: The amount of money to be received by a company for the sale of goods and…

Q: As of December 31, 20A, Mr. Kadil Guiamad holds a 60-day, 10% note of P240,000 signed by Ma.…

A: (a) The following Journal entry would be passed in the books of Kadil Guiamad upon the released of…

Q: how to compare between prepaid expenses and unearned revenue?

A: The adjustment for deferred items are made at the end of the year.

Q: Which of the following items represents a deferral?A. Prepaid insuranceB. Wages payableC. Fees…

A: In accounting, deferral means to defer or delay recognizing certain revenues or expenses…

Q: record estimated uncollectible accounts using the allowance method, the adjusting entry would be a ?

A: The allowance for doubtful accounts is created to record estimated bad debt expense for the period.

Q: Does every adjusting entry affect net income for a period? Explain.

A: Net income: Net income is the excess amount of revenue which is arises after deducting all the…

Q: How do defreinciate between a accured income and prepaid income

A: Introduction: Accruals: Transactions recorded in the books but not yet received or paid cash called…

Q: What is referred by unearned income? How is it adjusted in the final accounts?

A: Unearned income:Unearned income is known as deferred income or deferred revenue. It is the money…

Q: Which account is least likely to appear in an adjustingjournal entry?a. Cashb. Interest Receivablec.…

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

Q: When an account is written off using the allowance method, account receivable is ?

A: The allowance method usually sets aside a reserve for bad debts that are to be incurred in the…

Q: What is unearned income ,income recived  in advance ?

A: Unearned income or Income received  in advance: Earned revenue that represents to a future…

Q: How is the account Prepaid Insurance classified and on which financial statement should it be…

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Q: Two methods of accounting for uncollectible accounts are the     Question 40 options:   allowance…

A: Uncollectible accounts means the debt which has become bad i.e. bad debts. The account receivable…

Q: what are the most significant differences between uncollectible account expense and allowance for…

A: Both uncollectible account expense and allowance for uncollectible accounts will be available in the…

Q: If an adjustment includes an entry to a payable or receivable account, which type of adjustment is…

A: Some examples of adjusting entries including payable or receivable account are:   1. Rent expense…

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.