Which of the Following Is Most Likely to Result in an Adjusting

question 148

Multiple Choice

Which of the following is most likely to result in an adjusting entry at the end of the period?

• A) Payment of two months' insurance in advance
• B) Payment of one month's rent
• C) Owner's withdrawals
• D) Payment for routine maintenance on the company van

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Definitions:

Expense Account

An accounting category used for tracking money spent on operating activities of a business.

Repainting

Repainting involves updating or applying a fresh coat of paint to an object or area to enhance its appearance or protect it from damage.

Straight-Line Depreciation

A method of calculating the depreciation of an asset where the expense is evenly allocated over its useful life.

Salvage Value

The estimated resale value of an asset at the end of its useful life.