What Are Accounting Adjustments?

Unearned revenue

1. This transaction is recorded as a prepayment until the expenses are incurred.
2. If the Final Accounts are to be prepared correctly, these must be dealt with properly.
3. Remember, we are making these adjustments for management purposes, not for taxes.
4. Or, if you defer revenue recognition to a later period, this also increases a liability account.
5. On January 9, the company received $4,000 from a customer for printing services to be performed.
6. In accrual accounting, revenues and the corresponding costs should be reported in the same accounting period according to the matching principle.

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The matching principle