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These include revenues not yet received nor recorded and expenses not yet paid nor recorded. Accrued revenues are revenues that have been recognized (that is, services have been performed or goods have been delivered), but their cash payment have not yet been recorded or received. When the revenue is recognized, it is recorded as a receivable.

Accrued expenses have not yet been paid for, so they are recorded in a payable account. Expenses for interest, taxes, rent, and salaries are commonly accrued for reporting purposes 。

For example, on loan accrued or interest expense in the current period but not yet paid.

Adjusting entries for prepayments are necessary to account for cash that has been received prior to delivery of goods or completion of services. When this cash is paid, it is first recorded in a prepaid expense asset account; the account is to be expensed either with the passage of time (e.g. rent, insurance) or through use and consumption

These are expenses paid in advance and recorded as assets, to be recorded as expense. And revenues received in advance and recorded as liabilities, to be recorded as revenue .

For example, adjustments to unearned revenue, prepaid rent , prepaid telephone bill prepaid insurance, office supplies and so on .,

Adjusting entries are journal entries recorded at the end of an accounting period to adjust income and expense accounts so that they comply with the accrual concept of accounting. Their main purpose is to match incomes and expenses to appropriate accounting periods.

The transactions which are recorded using adjusting entries are not spontaneous but are spread over a period of time. Not all journal entries recorded at the end of an accounting period are adjusting entries. For example, an entry to record a purchase on the last day of a period is not an adjusting entry. An adjusting entry always involves either income or expense account.

An adjusted trial balance is a listing of all the account titles and balances contained in the general ledger after the adjusting entries for an accounting period have been posted to the accounts.

Adjusted trial balance can be used directly in the preparation of the statement of changes in stockholders' equity, income statement and the balance sheet. However it does not provide enough information for the preparation of the statement of cash flows.

An Adjusted Trial Balance is a list of the balances of ledger accounts which is to be created after the preparation of adjusting entries.

Adjusted trial balance contains balances of revenues and expenses along with those of assets, liabilities and equities

The format of an adjusted trial balance is same as that of unadjusted trial balance.

The adjusted trial balance is an internal document and is not a financial statement. The purpose of the adjusted trial balance 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。