d.credit to an expense account. The matching principle dictates that all revenue and expenses need to be matched according to the year they were earned and incurred. The accounts department is one of the most important in an organization. Making adjusting entries is a way to stick to the matching principle—a principle in accounting that says expenses should be recorded in the same accounting period as revenue related to that expense. The quiz below … Today we covered how to adjust different entries in the books of accounts. Which of the following is a nominal (temporary) account? Expense account and a credit to a prepaid account. These adjustments are made to more closely align the reported results and financial position of a business with the requirements of an accounting framework , such as GAAP or IFRS . 2.The journal to record an accrued expense includes a credit to which account? b.debit to an expense account. Balance sheet liability account Right! D. Expense account and a credit to a liability account. Likewise, there is no effect on the income statement in this journal entry as the company has already recorded the expense that has incurred together with the accrued salary in the previous period adjusting entry. The accounting for office or store supplies is similar to prepaid or unexpired expenses. B. c.debit to a liability account. True False 12. A. 4.The adjusting entry to record accrued expenses includes a. a.credit to an asset account. Inventory Expense account Wrong. The accrual basis of accounting recognizes revenues when cash is received from customers. An organization has a lot of transaction that lead to change the status of a company. Prior to recording adjusting entries at the end of an accounting period, some accounts may not show correct balances even though all transactions were properly recorded. Unless a company pays salaries on the last day of the accounting period for a pay period ending on that date, it must make an adjusting entry to record any salaries incurred but not yet paid. An accrued expense journal entry is a year-end adjustment to record expenses that were incurred in the current year but weren’t actually paid until the next year. True False 13. In the accounting cycle, adjusting entries are made prior to preparing a … C. Expense account and a credit to cash. Adjusting entries are Step 5 in the accounting cycle and an important part of accrual accounting. The company makes this journal entry of salaries paid to eliminate the liabilities that it has recorded in the period-end adjusting entry. If an adjusting entry is not made to accrue expenses, then the balance sheet liabilities will be? An adjusting entry to record an accrued expense involves a debit to a(n) A. Liabilty account and a credit to an expense account. Adjusting entries are journal entries recorded at the end of an accounting period to alter the ending balances in various general ledger accounts. Adjusting entries allow you to adjust income and expense … 5.Black Duck Enterprises has a five-day work week and pays the warehouse staff $15 per hour for each eight-hour work day. Adjusting Entries Adjusting Entries This guide to adjusting entries covers deferred revenue, deferred expenses, accrued expenses, accrued revenues and other adjusting journal Depreciation Expense Depreciation Expense Depreciation expense is used to reduce the value of plant, property, and equipment to match its use, and wear and tear, over time. The recording of the payment of employee salaries usually involves a debit to an expense account and a credit to Cash. 3. Entries allow you to adjust different entries the adjusting entry to record an accrued expense is quizlet the accounting cycle and an important part of accrual.! 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