Adjusting Entry (Noun)
Meaning
An accounting entry made at the end of an accounting period to allocate items between accounting periods.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The accountant made an adjusting entry to recognize the expense that had been incurred but not yet paid for.
- An adjusting entry was needed to allocate the cost of supplies between the current and future accounting periods.
- The adjusting entry for depreciation ensured that the asset's value was properly matched against the revenue it helped to generate.
- To correct the mismatch between the cash and accrual methods, the accountant made an adjusting entry to recognize the accrued revenue.
- The company's financial statements required an adjusting entry to allocate the prepaid rent between the current and future accounting periods.