1). In your own words, what is the Accural basis of Accounting? Is it different than the Cash basis - if so, how?

2). Describe the two main types of adjusting entries (deferrals and accruals). If a company were to pay for its RENT for it's corporate office 3 months in advance, what type of entry would that be and why? You should provide an example entry of what this would look like (be sure to use a debit and credit account in your example.)

3). Explain what an Unadjusted Trial Balance is. What is the relationship between the Unadjusted Trial Balance, adjusting journal entries, and the Adjusted Trial Balance?

4). Finally, what do we do with the Trial Balance, and what statements is it used to produce?

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Answer rating: 100% (QA)

ANSWER The accrual basis of accounting records transactions when they occur regardless of when the cash is received or paid This means revenues are re... View the full answer