Understanding Adjusting Entries in Accrual Accounting: Adjusting Journal Entries Types and Examples
For an auditor, on the other hand, these adjustments are a focal point for verifying the accuracy of a company’s financial records. An accountant records unpaid salaries as aliability and an expense because the company has incurred anexpense. For this reason, we alsocall these obligations accrued expenses. Accruedliabilities are liabilities not yet recorded at the end ofan accounting period….