Explain the statement: “The adjusting process is necessary for reporting the financial statements on an accrual basis.”
•Select one of the following four categories of adjusting entries (prepaid expenses, unearned revenues, accrued expenses, accrued revenues) and explain why this type of adjustment is needed.
•What are some of the typical accounts that are affected by this type of adjusting entry? What are some of the typical entries prepared during the adjusting process?
(minimum of 250 Word Count)