Which of the Following Journal Entries Is Created to Adjust $\quad$

question 127

Multiple Choice

Which of the following journal entries is created to adjust for an accrual? A. Accounts receivable
$\quad$ Revenues
B. Interest expense
$\quad$ Cash
C. Accounts receivable
$\quad$ Deferred revenue
D. Rent expense
$\quad$ Prepaid rent

• A) Option A
• B) Option B
• C)Option C
• D)Option D

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Definitions:

Straight-Line Depreciation

Straight-line depreciation is a method of allocating the cost of a tangible asset over its useful life in equal installments.

Present Value Interest Factors

A factor used to calculate the present value of a single future payment or a series of future payments, based on a specific interest rate and time period.

Guaranteed Residual Value

The predetermined value of a leased asset at the end of the lease term, often guaranteed by the lessee or a third party.

Maintenance Agreement

A contract between a service provider and a client for the ongoing maintenance and repair of equipment or property.