Accounting principles | business valuation | topics | career center | dictionary | accounting Q & A | quizzes | about us

Popular Accounting Topics

Accounting for Merchandising Activities
Debits and Credits (Double Entry Accounting)
Time Value of Money & Present/Future Values
Complex Debt & Equity Instruments
Common Stock & Shareholder's Equity
Accounting & Finance Ratios
Valuing Common Stock
Corporate Income Taxes
Lower of Cost or Market (LCM) & Inventory Valuation
Chart of Accounts & Bookkeeping
Bonds Payable & Long Term Liabilities
Capital Assets

What category of browser are you on this website?

Adjusting Entry

A journal entry at the end of an accounting period to bring an asset or liability account balance to its proper amount while also updating the related expense or revenue account.

• Some assets are used up during their lifetime and become expense.
• The cost is allocated to expense over the span of several accounting periods with adjusting entries.
• Adjusting entries are made at the end of the accounting periods to make the financial statements accurate.
• One of the most common adjusting entries is Depreciation expense.

>> More Accounting Terms & Glossary?

© Accounting Scholar | Privacy Policy & Disclaimer | Contact Us