LO 4.1Describe the expense recognition principle (matching principle). Give specifics.
LO 4.2Why is the adjusting process needed?
LO 4.2Are there any accounts that would never have an adjusting entry? Explain.
LO 4.2Why are adjusting journal entries needed?
LO 4.3When a company collects cash from customers before performing the contracted service, what is the impact, and how should it be recorded?
LO 4.3If adjusting entries include these listed accounts, what other account must be in that entry as well? (A) Depreciation expense; (B) Unearned Service Revenue; (C) Prepaid Insurance; (D) Interest Payable.
LO 4.4Why is the adjusted trial balance trusted as a reliable source for building the financial statements?