Problem%209-1 - adjusting entry is made. n Cash flows after...

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Solution Problem 9-1 Timing Issues Related to Adjusting Entries Account Category Account Category Also Called Examples When Does Cash Flow? When is the Adjusting Entry Made? When is Revenue or Expense Recognized? Property, Plant, & Equipment Fixed Assets n Equipment n Buildings n Trucks n Cash flows out n Cash flows before the adjusting entry is made. n Cash flows before the expense is recognized. n The adjusting entry is made after cash flows out. n The expense is recognized after cash flows out. Prepaid Assets Deferred Expenses n Supplies n Prepaid Rent n Prepaid Insurance n Cash flows out n Cash flows before the adjusting entry is made. n Cash flows before the expense is recognized. n The adjusting entry is made after cash flows out. n The expense is recognized after cash flows out. Accrued Liabilities Accrued Expenses n Wages Payable n Interest Payable n Cash flows out n Cash flows after the
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Unformatted text preview: adjusting entry is made. n Cash flows after the expense is recognized. n The adjusting entry is made before cash flows out. n The expense is recognized before cash flows out. Unearned Revenue Liabilities Deferred Revenues n Receive Cash for Rent in Advance n Receive Cash for Season Tickets in Advance n Cash flows in n Cash flows before the adjusting entry is made. n Cash flows before the revenue is recognized. n The adjusting entry is made after cash flows in. n The revenue is recognized after cash flows in. Accrued Assets Accrued Revenues n Interest Owed to us on a Note Receivable n Rend Owed to us by a Tenant n Cash flows in n Cash flows after the adjusting entry is made. n Cash flows after the revenue is recognized. n The adjusting entry is made before cash flows in. n The revenue is recognized before cash flows in....
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This note was uploaded on 07/13/2010 for the course ACC 311 taught by Professor Charrier during the Fall '08 term at University of Texas at Austin.

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