Foregone income, supplies and prepaid rent may need to be adjusted at the end of the reporting period.
Advance revenue refers to payments received from customers for services or products that have not yet been delivered and may require adjustments to recognize revenue when the services or products are delivered. At the end of the accounting period, supplies may need to be adjusted to account for all supplies used in that period.
Prepaid rent refers to prepaid rent that may need to be adjusted at the end of the reporting period to reflect the portion of rent used in the current period.