List the Four Basic Types of Accounts That Require Adjusting

question 136

Essay

List the four basic types of accounts that require adjusting entries and give an example of each.
1. Prepaid expenses; example: prepaid insurance
2. Unearned revenues; example: an attorney's retainer fee
3. Accrued revenues; example: unpaid interest earned on a note receivable
4. Accrued expenses; example: unpaid wages owed to employees
157. Under the accrual basis, some accounts in the ledger require updating at the end of the period. Discuss the three main reasons for this updating and give an example of each.

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Definitions:

Developing

In statistics or data analysis, it typically refers to the process of constructing models, hypotheses, or understanding patterns within data sets.

Dependent Variable

The outcome variable in an experiment or study that is being tested and measured, believed to be affected by the independent variable(s).

Regression Model

A statistical approach for estimating the relationships among variables, often one dependent variable and one or more independent variables.

Predict

The act of making educated guesses about the future based on current or past data, often an essential part of statistical analysis and planning.