Which of the Following Could Be Recorded as a Reversing

question 60

Multiple Choice

Which of the following could be recorded as a reversing entry?

• A) Depreciation of building
• B) Accrual of salary expense
• C) Allocation of prepaid rent in the current period
• D) Cash

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Definitions:

Coffee

A brewed drink prepared from roasted coffee beans, which are the seeds of berries from the Coffea plant.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers.

Income

The financial return or earnings from employment, investments, or business ventures.

Income Effect

The change in consumption that results from a change in real income, holding prices constant.