By definition, adjusting entries are not triggered by an explicit event. Therefore, accountants must initiate adjusting entries.

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By definition, adjusting entries are not triggered by an explicit event. Therefore, accountants must initiate adjusting entries. For each of the following adjusting entries, discuss a potential unethical behavior that an accountant or manager might undertake:

1. Recognition of expenses from the prepaid supplies account

2. Recognition of revenue from the unearned revenue account

3. Accrual of interest payable

4. Accrual of fees receivable

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Introduction to Financial Accounting

ISBN: 978-0133251036

11th edition

Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick

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