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Unformatted text preview: EXPENSES - REVENUES May be paid in cash Paying monthly rent May arise from using up an asset Using supplies previously purchased May arise from creating a liability Receive a bill from a supplier The Adjustment Process At the end of the period, a business prepares financial statements Ensures that: All revenue that has been earned has been recorded All expenses that have been incurred are matched to revenues Asset and liability accounts are up-to-date Categories of Adjusting Entries Deferrals Depreciation Accruals...
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- Spring '11
- Financial Accounting