Under the accrual basis of accounting, you must record revenues and expenses in the accounting period in which they were earned or incurred, regardless of when payment occurs. An adjusting entry is a ...

An important part of the monthly closing cycle for your small business's general ledger is reviewing the trial balance and posting adjusting entries to recognize accruals, prepaid expenses and correct ...

The initial recording of an asset purchase is not an adjusting entry. Adjusting entries related to assets typically involve depreciation or amortization, which allocates the cost of the asset over its ...