A. An adjusted trial balance proves the equality of the total debit balances and the total credit balances in the ledger after all adjustments are made.
Expenses incurred but not yet paid or recorded at the statement date (accrued expenses)
Expenses are recorded when cash is paid. not in accordance with generally accepted accounting principles (GAAP) Revenue Recognition Principle. Recognize revenue in the accounting period in which the performance obligation is satisfied (when it has been earned) Expense Recognition Principle.
Depreciation does not attempt to report the actual change in the value of the asset. unearned revenues adjusting entry. decrease (debit) to a liability account and an increase (credit) to a revenue account. Accruals are made to record.