Adjusting Entry

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Adjusting Entry

1. An adjustment made to a company's financial records at the end of an accounting period to assign revenues and expenses to the days on which the events justifying them occurred or on which the revenue was received, depending on the situation. For example, if a company is paid in advance for the purchase of some good, an adjusting entry may recognize that revenue on the day the good was delivered. Likewise, if the company was paid after delivery, it may recognize the revenue on the day it was paid. See also: Accrued Expenses, Accrued Revenue, Prepaid Expenses, Unearned Revenue.

2. Any correction to a previous entry in a company's financial records.
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All documentation and adjusting entries should be prepared at the time of the loan.
Two of the most commonly difficult subjects are the financial statements and their accounts and the introduction of accrual basis accounting and adjusting entries.
The parent then makes appropriate adjusting entries on its books for intercompany transactions.
Some of the new or expanded steps will include determining how the client prevents, deters, and detects fraud; increasing independent verification, physical observations, and sample sizes; making unannounced visits and surprise tests; performing a detailed review of closing entries and increasing reviews of end-of-period adjusting entries.
Table I summarizes these year end adjusting entries.
G/L Tie-Out Manager -- ensures that all reconciliation documents tie out to final general ledger balances; alerts finance executives to top level, fraudulent, and erroneous late adjusting entries.
Preparation Of All Audit Adjusting Entries For Input To The Financial Accounting System.
The Sarbanes-Oxley Act of 2002 (SOA) has added importance to proposed adjusting entries to financial statements.
Proposing adjusting entries, provided that the client reviews the entries and the member is satisfied that management understands the nature of the proposed entries and the impact the entries have on the financial statements.
At year-end, the return preparer made adjusting entries to reclassify the loans as running to and from the shareholders.
Have there been significant adjusting entries that have increased the inventory balance?
However, at year end, when preparing the trial balance along with the closing and adjusting entries, an accountant may discover other errors.