Q3-11 What are the steps that a company completes in the accounting cycle? Briefly discuss each step. Q3-12 Why are adjusting entries necessary? Q3-13 What are prepaid expenses and deferred revenues? Give an example of an adjusting entry to update each of these items at year-end. Q3-14 What are accrued expenses and accrued revenues? Give an example of an adjusting entry to record each of these items. Q3-15 Give two examples of adjusting entries to record estimated items. Include in one example a discussion of how depreciation is computed.
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