1. Unearned income is shown in the balance sheet as a . See answer 2. The expired cost of any fixed asset means . See answer 3. Interest received in advance is a liability that is known as . See answer 4. Income received in advance is known as . See answer 5. Prepaid rent is categorized as a . See answer 6. are expenses that have been incurred but will not be paid until the end of the accounting period. See answer 7. Revenue earned but not received until the end of the accounting period is known as . See answer 8. Expenses paid in advance are known as . See answer 9. Suppose that salaries amounting to $600 are outstanding until the end of the accounting period. The salaries expense account will be debited and the account will be credited when making an adjusting entry for this transaction. See answer 10. A trial balance prepared after considering the effect of adjusting entries is known as an . See answer You may also check: Adjusting Entries MCQs 1 Adjusting Entries MCQs 2 Adjusting Entries Q&A Adjusting Entries: Fill In the Blanks FAQs What is the difference between Adjusting and Regular Journal Entries? An adjusting entry is made to correct an error or imbalance in a company's financial records, while a regular journal entry records everyday transactions. Why are Adjusting Entries necessary? Adjusting Entries are necessary to ensure that a company's Financial Statements accurately reflect its financial position. Without Adjusting Entries, Financial Statements would be inaccurate and potentially misleading. What are some common examples of Adjusting Entries? Common examples of Adjusting Entries include Depreciation, accruals, and deferrals. What is the process for making an adjusting entry? The process for making an adjusting entry is generally as follows: determine the adjustment amount and then record the adjustment in a journal entry. Post the journal entry to the appropriate accounts in the General Ledger, and lastly, reconcile the accounts affected by the adjustment. What is the difference between an adjusting Trial Balance and a regular Trial Balance? An adjusting Trial Balance includes only those affected by adjustments, while a regular Trial Balance consists of all of the accounts in a company's General Ledger. About the Author True Tamplin, BSc, CEPF® Facebook Linkedin Instagram Twitter Youtube True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists. True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics. To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.
1. Unearned income is shown in the balance sheet as a . See answer 2. The expired cost of any fixed asset means . See answer 3. Interest received in advance is a liability that is known as . See answer 4. Income received in advance is known as . See answer 5. Prepaid rent is categorized as a . See answer 6. are expenses that have been incurred but will not be paid until the end of the accounting period. See answer 7. Revenue earned but not received until the end of the accounting period is known as . See answer 8. Expenses paid in advance are known as . See answer 9. Suppose that salaries amounting to $600 are outstanding until the end of the accounting period. The salaries expense account will be debited and the account will be credited when making an adjusting entry for this transaction. See answer 10. A trial balance prepared after considering the effect of adjusting entries is known as an . See answer You may also check: Adjusting Entries MCQs 1 Adjusting Entries MCQs 2 Adjusting Entries Q&A Adjusting Entries: Fill In the Blanks FAQs What is the difference between Adjusting and Regular Journal Entries? An adjusting entry is made to correct an error or imbalance in a company's financial records, while a regular journal entry records everyday transactions. Why are Adjusting Entries necessary? Adjusting Entries are necessary to ensure that a company's Financial Statements accurately reflect its financial position. Without Adjusting Entries, Financial Statements would be inaccurate and potentially misleading. What are some common examples of Adjusting Entries? Common examples of Adjusting Entries include Depreciation, accruals, and deferrals. What is the process for making an adjusting entry? The process for making an adjusting entry is generally as follows: determine the adjustment amount and then record the adjustment in a journal entry. Post the journal entry to the appropriate accounts in the General Ledger, and lastly, reconcile the accounts affected by the adjustment. What is the difference between an adjusting Trial Balance and a regular Trial Balance? An adjusting Trial Balance includes only those affected by adjustments, while a regular Trial Balance consists of all of the accounts in a company's General Ledger. About the Author True Tamplin, BSc, CEPF® Facebook Linkedin Instagram Twitter Youtube True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists. True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics. To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.