The Adjusting Process - Nature of the Adjusting Process

7 important questions on The Adjusting Process - Nature of the Adjusting Process

What is the Cash Basis of Accounting?

Under this basis of accounting, revenues and expenses are reported on the income statement in the period in which cash is received or paid

What is the Revenue Recognition Prinicple?

A principle that determines when revenue is recorded in the accounting records

What is Revenue Recognition?

The process of recording revenues
  • Higher grades + faster learning
  • Never study anything twice
  • 100% sure, 100% understanding
Discover Study Smart

What is the Adjusting process?

An analysis and updating of the accounts when financial statements are prepared

What are Adjusting Entries?

The journal entries that bring the accounts up to date at the end of the accounting period

What is the Accrual account adjustment?

An accrual occurs when revenue has been earned or an expense has been incurred but has not been recorded

What is the Deferral account adjustment?

A deferral occurs when cash related to a future revenue or expense has been initially recorded as a liability or an asset

The question on the page originate from the summary of the following study material:

  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
Trustpilot Logo