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Financial period closure
Illustrating Adjusting Entries in Accrual Accounting
December 12, 2023
What are some examples of adjusting entries in accrual accounting?
Adjusting entries in accrual accounting rectify discrepancies between accrued revenues or expenses and actual cash transactions. Examples include recognizing accrued revenues like unearned revenue, accrued expenses such as interest or salaries payable, depreciation, and prepayments. These entries ensure financial statements reflect the current economic status of a business.
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