What type of entry reflects the use of fertilizer purchased in a different accounting period in accrual accounting?

In accrual accounting, an adjusting entry is essential for recognizing expenses and revenues in the period they occur, regardless of when cash transactions take place. When fertilizer is purchased and used in a different accounting period, an adjusting entry ensures that the expense reflects the true usage of resources within the appropriate time frame.

This entry is necessary to comply with the matching principle, which states that expenses should be matched with the revenues they help generate in the same period. By making an adjusting entry, the business acknowledges the expense related to the fertilizer use, even if the cash was paid in a previous period.

Other types of entries, such as cash entries, would only record transactions when cash is exchanged and may not properly align with the expense recognition that accrual accounting requires. Non-cash entries might represent other forms of transactions but would not specifically address the expense recognition tied to the fertilizer use. Limited entries do not apply within this context, as they do not address the process of recognizing and adjusting for expenses incurred across different accounting periods.