A Complete Guide to Adjusting Entries

In this video, you'll discover everything you need to know about Adjusting Entries. Adjusting Entries are Journal Entries posted at the end of each accounting period to align a business's financial records with the Accrual Method of accounting. They can be categorized into four main groups:

▪ Prepaid Expenses
▪ Deferred Revenue
▪ Accrued Expenses
▪ Accrued Revenue

I’ll break down each type with simple, easy-to-follow examples to help you understand how they work in real-world scenarios. Adjusting Entries are crucial for creating accurate Financial Statements. By the end of this video, you'll have a solid grasp of how they work and why they’re so important.

⏱️TIMESTAMPS
00:00 - Intro
00:44 - What are Adjusting Entries?
08:14 - Prepaid Expenses
16:58 - Deferred Revenue
26:11 - Accrued Expenses
37:48 - Accrued Revenue

🔎FAQ

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[AccountingStuff]

Which of the following best describes Deferred Revenue?

a) Revenue that has been earned but not yet received
b) Payments received in advance for Revenue that hasn't yet been earned
c) Revenue that will not be earned in the future
d) Revenue from completed sales

🔗 ADJUSTING ENTRY PRACTICE QUESTIONS

⏱TIMESTAMPS
00:00 - Intro
00:44 - What are Adjusting Entries?
08:14 - Prepaid Expenses
16:58 - Deferred Revenue
26:11 - Accrued Expenses
37:48 - Accrued Revenue

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