An Adjusting Journal Entry Contains a Debit to an Expense

question 37

Multiple Choice

An adjusting journal entry contains a debit to an expense account and a credit to a contra account.This is an example of a(n) :

• A)accrued revenue.
• B)deferred revenue.
• C)depreciation expense.
• D)accrued expense.

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Definitions:

Remeasured Value

The adjusted value of an asset or liability based on changes in market conditions or currency exchange rates.

Functional Currency

The currency of the primary economic environment in which an entity operates, typically used in preparing financial statements.

Currency Exchange Rates

The value of one currency for the purpose of conversion to another, dictating how much one currency is worth in terms of another.

Operating Expense

Expenses incurred through normal business operations, such as rent, utilities, and payroll.