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Accrual Accounting and Adjusting Entries – Money Instructor

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Full Moon: How to Convert a Cash Basis Transactions into Accrual Basis

Begining AR of the year represent revenues earned last year that are collected this year. Ending unearned service revenue results from collections this year that will be recognized as revenue next year.

Beginning prepaid expenses should be recognized as expenses this year. The cash payment occurred last year. The expense recognition is deferred to a future period. As a result, ending prepaid expenses are. Beginning accrued liabilities are. Beginning accrued liabilities result from expenses recognized last year that require cash payments this year. Ending accrued liabilities are.

Ending accrued liabilities relate to expenses recognized this year that have not been paid. StudyBlue is not affiliated with, sponsored by or endorsed by the academic institution or instructor.

How to convert accrual basis to cash basis accounting — AccountingTools

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