Describe the adjusting entry required for prepaid expenses and unearned revenues? What is the effect on net income, assets, liabilities and shareholders’ equity of not recording a required adjusting entry for prepayments?

Answer rating: 100% (QA)

Unearned revenues are money received before work has been performed and is recorded as a liability Prepaid expenses are expenses the company pays for in advance and are assets including things like re... View the full answer