BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The process of recording such transactions in the books is known as making adjustments. An adjustment can also be defined as making a correct record of a transaction that has not been entered, or which has been recorded in an incomplete or incorrect way.

Detailed explanation-2: -an account kept by a company in addition to the official account, that is used to check that the official account is correct.

Detailed explanation-3: -An adjusting journal entry is an entry in a company’s general ledger that occurs at the end of an accounting period to record any unrecognized income or expenses for the period.

Detailed explanation-4: -There are three main types of adjusting entries: accruals, deferrals, and non-cash expenses. Accruals include accrued revenues and expenses. Deferrals can be prepaid expenses or deferred revenue. Non-cash expenses adjust tangible or intangible fixed assets through depreciation, depletion, etc.

Detailed explanation-5: -Here’s an example of an adjusting entry: In August, you bill a customer $5, 000 for services you performed. They pay you in September. In August, you record that money in accounts receivable-as income you’re expecting to receive. Then, in September, you record the money as cash deposited in your bank account.