Of the Following Adjusting Entries, Which One Results in an Increase

question 39

Multiple Choice

Of the following adjusting entries, which one results in an increase in liabilities and the recognition of an expense at the end of an accounting period?

• A) The entry to accrue salaries owed to employees at the end of the period.
• B) The entry to record revenue earned but not yet collected or recorded.
• C) The entry to record earned portion of rent previously received in advance from a tenant.
• D) The entry to write off a portion of unexpired insurance.

---

Definitions:

Unusual Loss

Losses that are uncommon in occurrence and not expected to recur in the foreseeable future, significantly impacting financial statements.

Interim Statement

Financial reports prepared and presented for periods less than a fiscal year, such as quarterly or half-yearly.

Operating Segment Disclosures

Financial reporting requirements that necessitate entities to disclose income, expense, and other significant information about their operating segments.

U.S. GAAP

The Generally Accepted Accounting Principles in the United States, a standard framework of guidelines for financial accounting used in any jurisdiction, including the rules and standards for corporate financial reports.