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    myaline1987's Avatar
    myaline1987 Posts: 3, Reputation: 1
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    #1

    Oct 11, 2009, 10:53 PM
    Explain the affect of missing adjusting entries on net income.
    Need help pleaz with that question! Thanks
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
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    #2

    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.
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