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:

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment relative to its cost.

Average Operating Assets

The average value of the assets used in day-to-day operations over a certain period, important for determining return on investment and operational efficiency.

Operating Expenses

Costs related to the normal operations of a business, excluding costs of goods sold, such as sales and marketing expenses.

Average Operating Assets

The average value of assets used in the production or operations of a company over a specific period, often used in performance metrics like return on investment.