ACCOUNTING ADJUSTMENTS WHY ARE ADJUSTMENTS IMPORTANT? Adjustments ensure that financial statements show accurate income, expenses, assets, and liabilities at the end of an accounting period. A. Periodic or Ordinary Adjustments ACCRUED REVENUES Revenue...
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ACCOUNTING ADJUSTMENTS WHY ARE ADJUSTMENTS IMPORTANT? Adjustments ensure that financial statements show accurate income, expenses, assets, and liabilities at the end of an accounting period. A. Periodic or Ordinary Adjustments ACCRUED REVENUES Revenue earned but not yet received. ACCRUED PREPAID EXPENSES EXPENSES Expenses incurred Payments made in but not yet paid. advance for future benefits. UNEARNED DEPRECIATION REVENUES Cash received before Allocation of an asset's providing goods or services. cost over its useful life. EXAMPLE: Insurance paid for 12 months → record only the portion used during the period.
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