Adjusting Entries

• What are prepaid expenses?

  An adjusting entry for when a business pays for an expense in one accounting period, but the expense paid for is not delivered until a future period.
• What is deferred revenue?

  An adjusting entry for when revenue is earned by a business in one accounting period, but the good or service owed is not delivered until a future period.
• What is accrued revenue?

  An adjusting entry for when a good or service is delivered in one accounting period, but revenue from the customer is not collected until a future period.
• What are accrued expenses?

  An adjusting entry for expenses that have been received by the business in one accounting period, but are not paid for until a future period.
• What are adjusting entries?

  Accounting entries that are posted at the end of an accounting period for transactions that are spread across multiple accounting periods to bring accounting books into alignment.