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ACC 290 Week 2 Discussion Question 1

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What is the revenue recognition principle? What is the expense recognition principle? Why are they important to financial reporting?

What are adjusting entries and why are they necessary?

What are accruals? Provide examples of accruals. Why do accruals require adjusting entries?

What are deferrals? What are some examples of deferrals? Why do deferrals require adjusting entries?

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