Summary of Timing Issues Related to Adjusting Entries Account Category Examples When does Cash Flow? When is the Adjusting Entry made, when is Revenue or Expense Recognized? and Property, Plant, & Equipment Equipment Building Cash flow out: before the ad]. entry before expense is recognized Adjusting entry made after cash flow out. Expense is recognized after cash flow out Prepaid Assets Prepaid rent Supplies Cash flow out: after the ad]. entry after expense is recognized Adjusting entry made before cash flow out. Expense is recognized before cash flow out Accrued liabilities Wage s payable Interest payable Cash flow out: after the ad]. entry before expense is recognized Adjustingentry made before cash flow out. Expense is recognized after cash flow out Unearned Revenue Liabilities Receive advance: payment for services paym ent for rent interest receivable unbilled services Cash flowin: after the ad]. entry after revenue is recognized Cash flowin: after the ad]. entry after revenue is recognized Adjusting entry made before cash flow in. Revenue is recognized after cash flow in Adjusting entry made before cash flow in. Revenue is recognized after cash flow in