Question

Know the 5 types of adjusting entries, and be able to complete the entries as well___________

Answer 1

There are five types of adjusting entries: accrued expenses, accrued revenues, prepaid expenses, unearned revenues, and depreciation.

Step-by-step explanation:

Types of Adjusting Entries

1. Accrued Expenses: These entries record expenses that have been incurred but not yet paid, such as utility bills or salaries.
2. Accrued Revenues: These entries record revenues that have been earned but not yet received, such as interest income or rent.
3. Prepaid Expenses: These entries represent expenses that have been paid in advance but are not yet incurred, such as insurance premiums or rent.
4. Unearned Revenues: These entries represent revenues that have been received in advance but are not yet earned, such as prepaid subscriptions or advance deposits.
5. Depreciation: This type of entry is used to allocate the cost of a long-term asset over its useful life, such as buildings or equipment.