Of the six typical adjusting journal entries found in chapter three and described in a previous discussion, which of the six is likely to have the largest financial impact of a company's income statement? When we look a major corporation like Disney, General Motors or Federal Express, one of the AJES (adjusting journal entries) will have financial impact likely in the hundreds of million dollars. Which of the six is likely to have the largest financial impact of a company's income statement, and of course, please explain why? 1. Accrued Revenues (and the related receivables) have been earned, but the sales invoices have not yet been processed. revenues 2. Accrued Expenses (and the related payables) have been incurred, but the vendors' invoices have not been completely processed Money was received in advance of having been earned expenses 3. Deferred revenues Money was paid for a future expense 4. Deferred expenses 5. Depreciation An asset was purchased in one period, but its cost must be allocated to expense in each of the accounting periods of the asset's useful life. expense