Which of the Following Is Not an Example of an Adjusting

question 42

Multiple Choice

Which of the following is not an example of an adjusting entry?

• A)Recording unpaid interest at year end relating to an outstanding loan balance at year end
• B)Recording amortization on office equipment purchased during the year
• C)Recording the gain on the sale of equipment made during the year.
• D)Reducing the prepaid rent account for the portion of rent actually used.

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Definitions:

National Income

The total value of all goods and services produced by a country's economy over a specific period, often used as a measure of the economic health of a nation.

Government Expenditures

The total amount spent by the government in a particular period, including spending on goods, services, and transfer payments.

Net Exports

The difference between a country's total exports of goods and services and its total imports, which can be either positive (surplus) or negative (deficit).

GPI

An alternative measure to GDP that accounts for the economic well-being of a country by incorporating environmental and social factors.