The recording of interest earned on an account balance or wages payable is an example of which type of adjusting journal entry?
A)accrual entry
B)deferral entry
C)revaluation entry
D)correcting entry

Question

Quizplus · Accepted Answer

The recording of interest earned on an account balance or wages payable (which have not yet been paid) is an example of an accrual entry, where revenue or expenses are recognized before they are received or paid, based on the accrual accounting principle.

The Recording of Interest Earned on an Account Balance or Wages