PDA

View Full Version : Explain the affect of missing adjusting entries on net income.


myaline1987
Oct 11, 2009, 10:53 PM
Need help pleaz with that question! Thanks

ROLCAM
Oct 13, 2009, 07:31 PM
You need to be more specific about what kind of INCOME you are talking about and also what type of business you are accounting for.

As a simple example in an INSURANCE
BUSINESS , the premiums received are NOT fully earned.
The Income needs adjusting for the UNEXPIRED PARTS OF THE PREMIUMS.

The affect this will have is obviously REDUCING the Final Net Income.