Which of the Following Accounts Could Not Be Credited in an Adjusting

question 150

Multiple Choice

Which of the following accounts could not be credited in an adjusting entry?

• A)Service Revenue
• B)Prepaid Rent
• C)Office Supplies
• D)Interest Receivable

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Definitions:

Stockholders' Equity

Represents the owners' residual interest in the assets of a corporation after deducting liabilities, often detailed in the equity section of the balance sheet.

Capital Surplus

Excess amount received by a company over the par value of its stock, reflected in the shareholders' equity section of the balance sheet.

Retained Earnings

The portion of a company's profit that is held or retained and not paid out as dividends to shareholders, often used for reinvestment in the business or to pay off debt.

Paid-In Capital

The total amount of money that shareholders have invested in the company by purchasing shares directly from the company.