Which of the following is an example of an adjusting entry?
A)Collecting cash owing from a customer.
B)Paying interest expense on a loan.
C)Buying supplies on credit.
D)Recognizing the expired portion of prepaid rent.

Question

Quizplus · Accepted Answer

Recognizing the expired portion of prepaid rent is an example of an adjusting entry because it involves adjusting the financial statements to properly reflect the amount of rent expense that has been incurred during the accounting period.

Which of the Following Is an Example of an Adjusting