Which of the Following Pairs of Accounts Could Not Appear

question 132

Multiple Choice

Which of the following pairs of accounts could not appear in the same adjusting entry?

• A) Service Revenue and Unearned Revenue
• B) Interest Income and Interest Expense
• C) Rent Expense and Prepaid Rent
• D) Salaries Payable and Salaries Expense

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Definitions:

Mutual Mistake

A situation in contract law where all parties involved have a mistaken belief about a basic assumption on which the contract is based, potentially making the contract voidable.

Risk of Loss

The potential for an asset to decrease in value or for an event to cause financial hardship.

Jewelry Store

A retail business establishment specialized in selling jewelry, including rings, necklaces, earrings, and bracelets.

Insurable Interest

A requirement in insurance policies that the policyholder must stand to suffer a financial loss from the insured event, giving them a legitimate interest in seeking coverage.