Examlex
The effects of the Ames Room are DUE primarily to distortions in:
Deferred Revenue
Income received by a company for goods or services yet to be delivered or performed; it is recorded as a liability on the balance sheet until the transaction is completed.
Accrued Revenue
Revenue that has been earned but not yet received or recorded at the end of an accounting period.
Adjusting
The process of making entries to update internal accounts for events that have transpired but are not yet recorded at the end of an accounting period.
Cash Basis
An accounting method where revenues are recognized when cash is received, and expenses are recorded when cash is paid out.
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