Asked by
Chase Sloman
on Nov 12, 2024
Verified
An adjusting entry would adjust revenue so it is reported when earned and not when cash is received.
Revenue
The total income generated by a business from its normal business operations, such as sales of goods or services.
Earned
Income or revenue that has been generated from business activities or services provided.
Cash
Money in the form of coins or banknotes, especially that used to operate a business.
- Comprehend the principles of revenue recognition and expense matching.
- Outline the influence of adjusting entries on financial statement account balances.
Verified Answer
DP
Learning Objectives
- Comprehend the principles of revenue recognition and expense matching.
- Outline the influence of adjusting entries on financial statement account balances.
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