Which of the Following Transactions Constitutes an Accrual Adjustment Involving

question 10

Multiple Choice

Which of the following transactions constitutes an accrual adjustment involving a revenue account?

• A)Revenue earned,but not yet collected,on investments.
• B)Cash collected in advance of the revenue being earned.
• C)Wages incurred,but not yet paid to employees,at the end of the accounting period.
• D)Interest owed,but not yet paid,on a note payable.

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Definitions:

Profit and Loss Allocation

Profit and Loss Allocation involves distributing a business’s profits and losses among its various stakeholders or business areas.

Journal Entry

The record of a financial transaction in the accounting records of a business.

Other Assets

Assets that don't fit into the main categories of current assets, property, plant, equipment, or intangible assets.

Liquidation

The process of closing a business and distributing its assets to claimants.