Financial Accounting (ACCT 102) Adjusting Entries (Accruals, Deferrals, Depreciation) Practice Problems
Indiana University Bloomington
Financial Accounting (ACCT 102) | Practice Problems

Overview
A finals-focused practice set on adjusting entries: accruals, deferrals, depreciation, and how each adjustment changes the income statement and balance sheet.

Key topics
•accrued revenues and accrued expenses
•deferred revenues and prepaid expenses
•depreciation and contra-asset accounts
•adjusted trial balance and closing preview
•statement effects (A=L+E links)

Suggested study tasks
•work 12 adjustment scenarios and label each as accrual vs deferral
•write the adjusting entry then state the statement impact (income statement and balance sheet)
•build one mini adjusted trial balance from 6 accounts
•recompute net income after adjustments and explain why it changed
•do a 5-minute checklist review before the exam

Common pitfalls
•posting to the right accounts but the wrong debit/credit side
•forgetting that one adjustment affects both statements
•mixing cash vs accrual timing in explanations
•depreciation confusion between expense and accumulated depreciation
•skipping units (months, years) when prorating