Asked by sheshu vmware on Jul 15, 2024
Verified
Describe the types of entries required in later periods that result from accruals.
Accruals
Accounting adjustments for revenues that have been earned or expenses that have been incurred but have not yet been recorded through a cash transaction.
- Understand the rationale and methods involved in adjusting entries, including their repercussions on financial statements.
Verified Answer
LD
Lavonne Dozie- NnamahJul 20, 2024
Final Answer :
Accrued revenues recorded in one period result in recording cash received in a later period.At the time of an accrual of revenue,a receivable account is debited.When cash for accrued revenues is received,a journal entry must be made to recognize the cash receipt and reduce the receivable.Accrued expenses recorded in one period result in recording cash payments made in later periods.At the time of an accrual of an expense,a payable account is credited.When the cash for these expenses is paid,a journal entry must be made to recognize the cash payment and reduce the payable.
Learning Objectives
- Understand the rationale and methods involved in adjusting entries, including their repercussions on financial statements.
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