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    What Are The Adjusting Entries?

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    Catherine Rose Villarin Alferez
    Adjusting entries are journal entries recorded at the end of an accounting period to align reported results with accounting frameworks like GAAP or IFRS. They involve matching revenues to expenses under the matching principle and impact reported revenue and expense levels. Adjusting entries are typically made just before issuing financial statements and adjust revenues and expenses to the period in which they occurred. The four accounts that need adjusting are accrued revenues, accrued expenses, deferred revenues, and deferred expenses to properly reflect money earned or owed across accounting periods.

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    What Are The Adjusting Entries?

    Uploaded by

    Catherine Rose Villarin Alferez
    12 views1 page
    Adjusting entries are journal entries recorded at the end of an accounting period to align reported results with accounting frameworks like GAAP or IFRS. They involve matching revenues to expenses under the matching principle and impact reported revenue and expense levels. Adjusting entries are typically made just before issuing financial statements and adjust revenues and expenses to the period in which they occurred. The four accounts that need adjusting are accrued revenues, accrued expenses, deferred revenues, and deferred expenses to properly reflect money earned or owed across accounting periods.

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    Accounting.docx

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    Adjusting entries are journal entries recorded at the end of an accounting period to align reported results with accounting frameworks like GAAP or IFRS. They involve matching revenues to expenses under the matching principle and impact reported revenue and expense levels. Adjusting entries are typically made just before issuing financial statements and adjust revenues and expenses to the period in which they occurred. The four accounts that need adjusting are accrued revenues, accrued expenses, deferred revenues, and deferred expenses to properly reflect money earned or owed across accounting periods.

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    12 views1 page

    What Are The Adjusting Entries?

    Uploaded by

    Catherine Rose Villarin Alferez
    Adjusting entries are journal entries recorded at the end of an accounting period to align reported results with accounting frameworks like GAAP or IFRS. They involve matching revenues to expenses under the matching principle and impact reported revenue and expense levels. Adjusting entries are typically made just before issuing financial statements and adjust revenues and expenses to the period in which they occurred. The four accounts that need adjusting are accrued revenues, accrued expenses, deferred revenues, and deferred expenses to properly reflect money earned or owed across accounting periods.

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    Catherine Rose V.

    Alferez
    XI-Mt. Makiling

    What are the adjusting entries?

    Adjusting entries are journal entries recorded at the end of an


    accounting period to alter the ending balances in various general
    ledger accounts. These adjustments are made to more closely align
    the reported results and financial position of a business with the
    requirements of an accounting framework, such as GAAP or IFRS.
    This generally involves the matching of revenues to expenses under
    the matching principle, and so impacts reported revenue and expense
    levels.

    When are adjusting entries prepared?

    An adjusting journal entry is typically made just prior to issuing a company's


    financial statements. To demonstrate the need for an accounting adjusting
    entry let's assume that a company borrowed money from its bank
    on December 1, 2018 and that the company's accounting
    period ends on December 31.

    Why are adjusting entries prepared?

    The purpose of adjusting entries is to adjust revenues and expenses to


    the accounting period in which they occurred. After the entries are made in
    the accounting journals, they are posted to the general ledger in the same
    way as any other accounting journal entry.

    What are the accounts that need to be adjusted?

    There are four types of accounts that will need to be adjusted. They are
    accrued revenues, accrued expenses, deferred revenues and
    deferredexpenses. Accrued revenues are money earned in one
    accounting period but not received until another.

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