Which of the Following Adjusting Journal Entries Is Not Created $\quad$

question 23

Multiple Choice

Which of the following adjusting journal entries is not created as the result of an accrual? A. Interest expense
$\quad$ Interest payable
B. Accounts receivable
$\quad$ Service revenue
C. Prepaid Rent
$\quad$ Rent expense
D. Interest receivable
$\quad$ Investment income

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

---

Definitions:

Gross Profit

The difference between revenue from sales and the cost of goods sold, before deducting overhead, payroll, taxation, and interest payments.

Sales

The transactions involving the exchange of goods or services for money, reflecting the primary revenue source for most businesses.

Operating Income

Earnings from a company's main business activities, excluding expenses like interest and taxes.

Operating Expenses

Operating expenses are the costs associated with running a company's core business operations, excluding the cost of goods sold, such as rent, utilities, and payroll.