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Homework answers / question archive / Do adjusting entries involving estimated liabilities and accruals ever affect cash flows? Explain you answer

Do adjusting entries involving estimated liabilities and accruals ever affect cash flows? Explain you answer

Accounting

Do adjusting entries involving estimated liabilities and accruals ever affect cash flows? Explain you answer.

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Adjusting entries, generally, are year end closing entries required by Accruel or Mercantile style of accounting as adjusting entries are those journalised to record income not received but due or liabilities not paid but are due and needed to be paid . Since it can be observed that no event entered and therefore no cash inflow or outflow occurs and so Cash flow is not affected by Adjudting entries.

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