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.

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Definitions:

Racial Disparities

The differences in treatment and outcomes that people of different races experience in various areas such as healthcare, education, and criminal justice.

Reward For Application

A principle in psychology and behavioral science that suggests positive outcomes or rewards following the application of a specific behavior or skill encourage repeat behavior.

Belief

A state of mind in which trust or confidence is placed in some proposition or entity without absolute empirical evidence.

Positive Results

Outcomes of an experiment or study that confirm the hypothesis or expectations set forth by the researchers, often indicating a successful intervention or finding.