Which of the Following Is an Example of an Adjusting

question 18

Multiple Choice

Which of the following is an example of an adjusting entry?

• A) The payment of wages which have been accrued
• B) The collection of an accounts receivable
• C) The return of defective inventory
• D) The accrual of interest expense

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Definitions:

IFRS

International Financial Reporting Standards, a set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements.

GAAP

Generally Accepted Accounting Principles, a set of rules and standards designed to improve the clarity, consistency, and comparability of financial reporting across industries in the United States.

Deferred Income Taxes

Taxes owed for the current period but not yet required to be paid, due to differences between financial accounting and tax reporting.