Which of the following accounts are involved in the adjusting entry:
asset
liability
revenue
expense
An ______ is debited and an ______ is credited.
Answer :
An expense is debited and an asset is credited.
Note:
When the adjusting entry is made, the expense account is debited as the expense is recorded in the books and the asset account is credited because there is a decrease in the asset,
For Example: At the year end, prepaid rent account would be credited and rent expense would be debited with an equivalent amount.
Which of the following accounts are involved in the adjusting entry: asset liability revenue expense An...
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The adjusting entry to record an accrued expense is: A. Increase an expense; increase a liability. B. Increase an asset; increase revenue. C. Decrease a liability; increase revenue. D. Increase an expense; decrease an asset. E. Increase an expense; decrease a liability.
Which of the following adjusting entries will increase rent revenue and decrease rent expense? A. Entry to record accrued revenue B. Entry to record the earned portion of revenue in advance and credited to rent expense. C. Entry to record accrued expense D. None of the entries applies
Adjusting entries affect at least one balance sheet account and at least one income statement account. For the entries below, identify the account to be debited and the account to be credited. Indicate which of the accounts is the income statement account and which is the balance sheet account. Assume the company records prepayments of expenses in asset accounts, and cash receipts of unearned revenues in liability accounts. a. Entry to record revenue earned that was previously received as cash...
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Adjusting entries affect at least one balance sheet account and at least one income statement account. For the entries below, identify the account to be debited and the account to be credited. Indicate which of the accounts is the income statement account and which is the balance sheet account. Assume the company records prepayments of expenses in asset accounts, and cash receipts of unearned revenues in liability accounts. a. Entry to record revenue earned that was previously received as cash...
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