adjusted entries

What Are Adjusting Entries Needed For?

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What Are Adjusting Entries Needed For? The purpose of adjusting entries is to convert cash transactions into the accrual accounting method. Accrual accounting is based on the revenue recognition principle that seeks to recognize revenue in the period in which it was earned, rather than the period in which cash is received. What are the

What Is The Effect Of The Debit Portion Of An Adjusting Entry?

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What Is The Effect Of The Debit Portion Of An Adjusting Entry? Increases the balance of an expense account. Explanation: A liability is increased, when an expense is incurred and not paid for, in the first place. Therefore, if the credit portion of an adjusting entry results in an increase in a liability account, then