Many transaction affect the revenue expense of two or more accounting period .Adjusting entries are made at the end of each accounting period there are several different types of adjusting entries in fact many business make a dozen or more adjusting entries at the end of every accounting period.The concept of end of period adjustment with the entry to record depreciation expense,this is the most common of all adjusting entries .the term depreciation mean the systematic allocation of the cost of an assets to expense over the accounting period.
No comments:
Post a Comment