Why may a trial balance not contain up-to-date and complete financial information?

Distinguish between the two categories of adjusting entries, and
identify the types of adjustments applicable to each category.

. What is the debit/credit effect of a prepaid expense adjusting entry?

. “Depreciation is a valuation process that results in the reporting
of the fair value of the asset.” Do you agree? Explain.

. Explain the differences between depreciation expense and accumulated depreciation.