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Post-Lecture Question 01 Adjusting entries

Post-Lecture Question 01

Adjusting entries


are external events involving a transfer or exchange between two or more entities.

reduce the nominal accounts to zero and transfer net income or loss to an owners’ equity account.

are made at the end of an accounting period to bring all accounts up to date on an accrual basis.

all of these answer choices are correct.

Solutions

Expert Solution

Adjusting entries are made at the end of an accounting period to bring all accounts up to date on an accrual basis.
Adjusting entries involve a Balance sheet account and an Income statement account to bring accounts up to date.
Common Adjusting entries include Depreciation entry, Prepaid expenses entry, Accrued revenue and expense entry.
Closing entries reduce the nominal accounts to zero and transfer net income or loss to an owners’ equity account.
Option C is correct

ekkarill92 answered 2 years ago
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