Depreciation Expense and Bad Debt Expense Are Examples of Which

question 47

Multiple Choice

Depreciation expense and bad debt expense are examples of which type of adjusting journal entry?

• A) deferrals
• B) accruals
• C) revaluations
• D) estimates

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Definitions:

Cost Method

An accounting method for investments where the investment is recorded at the purchase cost, without recognizing subsequent changes in market value.

Semiannual Receipt

Payments or incomes that are received twice a year.

Accrued Interest

The amount of interest that has been incurred but not yet paid over a particular period.

Government Bonds

Debt securities issued by a government to support government spending, which investors can purchase, typically considered low-risk investments.