The Following Adjusting Journal Entry Found in the Journal Is

question 14

Multiple Choice

The following adjusting journal entry found in the journal is missing an explanation. Select the best explanation for the entry.

• A) Record payment of wages
• B) Record wages paid last month
• C) Record wages paid in advance
• D) Record wages expense incurred and to be paid next month

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Definitions:

Adjusting Entry

An accounting entry made in the books at the end of an accounting period to allocate revenues and expenditures to the period in which they actually occurred.

Accrued Expenses

Expenses that have been incurred but not yet paid or recorded in the financial statements, representing future obligations.

Accrued Revenue

Revenue that has been earned but not yet received in cash or recorded by the accounting system.

Reversing Entries

Reversing entries are journal entries made at the beginning of an accounting period to negate the effects of certain adjustments made in the previous period.