Adjusting entries for Supplies and Prepaid Rent would be adjustments for:
A)deferred expense.
B)deferred revenue.
C)accrued expense.
D)accrued revenue.

Question

Quizplus · Accepted Answer

Adjusting entries for Supplies and Prepaid Rent would be adjustments for a deferred expense. This is because they are expenses that have been paid for in advance and need to be recognized over a period of time rather than all at once.

Adjusting Entries for Supplies and Prepaid Rent Would Be Adjustments