Adjusting Entries for Accruals

Question 1

accounts before adjustment

unearned revenues

adjusting entries for deferrals

Answer 1

liabilities overstated;
revenues understated

adjusting entries for deferrals

Question 2

Accounts before adjustment

accrued expenses

adjusting entries for deferrals

Answer 2

expenses understated;
liabilties understated

adjusting entries for deferrals

Question 3

Accounts before adjustment

accrued revenues

adjusting entries for deferrals

Answer 3

assets understated;
revenues understated

adjusting entries for deferrals

Question 4

reason for adjustment

accrued revenues

adjusting entries for deferrals

Answer 4

services performed but not yet received to cash or recorded

adjusting entries for deferrals

Question 5

Reason for adjustment

accrued expenses

adjusting entries for deferrals

Answer 5

expenses have been incurred, but not yet paid in cash or recorded

adjusting entries for deferrals

Question 6

make the adjustment

an adjusting entry for accrued expenses results in

adjusting entries for deferrals

Answer 6

(+) debit to an expense account
(+) credit to a liability account

adjusting entries for deferrals

Question 7

list

common examples of accrued expenses

adjusting entries for deferrals

Answer 7

interest, taxes, and salaries

adjusting entries for deferrals

Question 8

Make the adjustments

An adjusting entry for accrued revenues requires

adjusting entries for deferrals

Answer 8

(+) debit to an asset account;
(+) credit to a revenue account

adjusting entries for deferrals

Question 9

name the account

an adjusting entry for accrued revenues results in a credit to

adjusting entries for deferrals

Answer 9

(credit to) a revenue account

adjusting entries for deferrals

Question 10

name the account

an adjusting entry for accrued revenues results in a debit to

adjusting entries for deferrals

Answer 10

(debit to) an asset account

adjusting entries for deferrals

Question 11

Fill in the blank

Interest revenue may ___ with the passing of time.

adjusting entries for deferrals

Answer 11

accumulate (accrue)

adjusting entries for deferrals

Question 12

Define

accrued revenues

adjusting entries for deferrals

Answer 12

Revenues for services performed but not yet recorded at the statement date

adjusting entries for deferrals