Asked by
Gianna Guarino
on Oct 16, 2024
Verified
A company's month-end adjusting entry for Insurance Expense is $1,000.If this entry is not made then expenses are understated by $1,000 and net income is overstated by $1,000.
Insurance Expense
The cost incurred by a company to insure its assets, operations, and potentially its employees, recognized as an expense.
Adjusting Entry
An accounting entry made to correct, update, or complete financial records at the end of an accounting period.
Net Income
The total amount of profit earned by a company after all expenses and taxes have been deducted from total revenue.
- Understand the influence of adjusting entries on the balances of financial statement accounts.
- Recognize the importance of properly timing and acknowledging revenue and expenses.
Verified Answer
FF
Learning Objectives
- Understand the influence of adjusting entries on the balances of financial statement accounts.
- Recognize the importance of properly timing and acknowledging revenue and expenses.
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