Question

Adjusting entries include adjustments for revenues earned but not yet collected and expenses incurred but not yet paid. They also include adjustments for revenues earned that were collected in advance and expenses incurred that were previously recorded as assets. (Enter one word per blank.)

Answer 1

Answer:

Accrued Revenues, Accrued Expenses, Deferred Revenue, Deferred Expense

Explanation:

Accrued Revenue:

When a revenue is recognised but, the payment is not yet received

Accrued Expense:

When an expense is recognised but, the payment is not yet done.

Deferred Revenue:

When the cash is received but the services are yet to be provided

Deferred Expense:

When the payment is done in advance and services will be received over time