Which of the Following Adjusting Entries Would Be the Most

question 11

Multiple Choice

Which of the following adjusting entries would be the most likely be reversed?

• A) Depreciation Expense 500
• Accumulated Depreciation 500
• B) Salary Expense 1980
• Salary Payable 1980
• C) Insurance Expense 500
• Prepaid Insurance 500
• D) Unearned Subscriptions 2,000
• Subscription Revenue 2,000

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Definitions:

Unearned Fees

Income received by a business for goods or services yet to be delivered or performed, considered a liability until the service or product is delivered.

Liability

A financial obligation or debt owed by a company or individual to another entity, payable in money, goods, or services.

Account Type

Categories under which financial transactions are recorded, such as assets, liabilities, equity, revenue, and expenses.

Prepaid Rent

Expenses paid in advance for the use of property or equipment that is recorded as an asset until the period it benefits.