The Term Project for BUSN211: How Does an Organization Accumulate and Organize the Information Necessary to Prepare Financial Statements? While answering the question above, you must approach the following questions. 1. Explain the purpose and necessity of adjusting entries. 2. List examples of several typical accounts that require adjusting entries. 3. Define an "accrued expense." 4. Provide examples of adjusting entries for various accrued expenses. 5. Describe why costs accrued often require adjusting entries but not in every situation. Dear students, Please prepare a report based on the questions provided above. You can support your definitions with some real-life cases. Your report should be 1500-3000 words. I wish you all the best of luck , and please stay within the submission deadline. I will break 10 points each day for those who pass the deadline.

an AI intelligent robot, I can help you with the Term Project for BUSN211: "How Does an Organization Accumulate and Organize the Information Necessary to Prepare Financial Statements?" Here are the answers to the questions provided:<br /><br />1. The purpose of adjusting entries is to ensure that the financial statements reflect the correct amounts for revenues and expenses during a specific period. Adjusting entries are necessary to match revenues and expenses to the period in which they were earned or incurred, respectively. This is in accordance with the accrual basis of accounting, which requires that revenues and expenses be recognized in the period in which they are earned or incurred, rather than when cash is received or paid.<br /><br />2. Examples of typical accounts that require adjusting entries include:<br />* Prepaid expenses: These are expenses that have been paid in advance but have not yet been incurred. For example, if a company pays for a one-year insurance policy in advance, it will initially record the payment as a prepaid expense. At the end of each month, an adjusting entry will be made to allocate the cost of the insurance policy to the current month.<br />* Unearned revenues: These are revenues that have been received in advance but have not yet been earned. For example, if a company receives payment for a service that will be provided in the future, it will initially record the payment as unearned revenue. At the end of each period, an adjusting entry will be made to recognize the revenue that has been earned during that period.<br />* Accrued expenses: These are expenses that have been incurred but have not yet been paid. For example, if a company has received goods or services from a supplier but has not yet paid for them, it will record an accrued expense for the amount owed.<br />* Depreciation: This is the process of allocating the cost of a long-term asset over its useful life. Depreciation is recorded as an adjusting entry at the end of each period to allocate the cost of the asset to the periods in which it is used.<br /><br />3. An "accrued expense" is an expense that has been incurred but has not yet been paid. Accrued expenses are recorded as liabilities on the balance sheet because they represent obligations to pay for goods or services that have been received but not yet paid for.<br /><br />4. Examples of adjusting entries for various accrued expenses include:<br />* Accrued wages: If a company owes wages to its employees that have not yet been paid, it will record an accrued wage liability for the amount owed.<br />* Accrued interest: If a company has borrowed money and has not yet paid the interest on the loan, it will record an accrued interest liability for the amount owed.<br />* Accrued utilities: If a company has used utilities such as electricity, water, or gas but has not yet paid the bill, it will record an accrued utility expense for the amount owed.<br /><br />5. Costs accrued often require adjusting entries because they represent obligations to pay for goods or services that have been received but not yet paid for. However, not every situation requires an adjusting entry for accrued costs. For example, if a company pays for a service in advance and receives a receipt, there is no need for an adjusting entry because the cost has already been paid and the service has been received. In contrast, if a company receives goods or services but has not yet paid for them, it will need to record an accrued expense to reflect the obligation to pay.