Which of the Following Accounts Could Not Be Credited in an Adjusting

question 91

Multiple Choice

Which of the following accounts could not be credited in an adjusting entry?

• A) Equipment
• B) Prepaid Insurance
• C) Office Supplies
• D) Interest Receivable

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Definitions:

Partially Assembled

Refers to products or goods that have been partially put together but require additional assembly or work to be considered complete.

Raw Logs

Unprocessed timber that has been cut but not yet transformed into lumber or other finished products.

Least Liquid

Assets that are hardest to convert into cash without significant loss in value.

Credit Period

The duration of time the buyer is allowed to pay for a purchase after the sale has been made, without incurring any interest.