Which of the Following Is Considered an Adjusting Entry

question 51

Multiple Choice

Which of the following is considered an adjusting entry?

• A)The entry to record depreciation.
• B)The entry to pay salaries.
• C)The entry to pay outstanding bills.
• D)The entry to declare a dividend distribution.

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Definitions:

Open Invoice

An invoice that has been issued by a seller to a buyer, but has not yet been paid.

Credit Card Payment

A transaction method allowing purchasers to buy goods or services using credit issued by a bank or financial institution.

Progress Billing

A billing method where payments are made to a contractor by a client at various stages of a project, based on progress.

Estimates

Preliminary calculations or projections, often used in accounting and project planning to approximate future costs or revenues.