An adjusting entry will not take the format of which one of the following entries?
A)A debit to an expense account and a credit to an asset account
B)A debit to an expense account and a credit to a revenue account
C)A debit to an asset account and a credit to a revenue account
D)A debit to a liability account and a credit to a revenue account
E)An adjusting entry could take the format of any choice a through d.

Question

Quizplus · Accepted Answer

Adjusting entries are made to update the accounts at the end of an accounting period and typically involve the recognition of earned revenues and incurred expenses that have not yet been recorded. The format of adjusting entries usually involves debits and credits to expense, revenue, asset, or liability accounts to reflect changes in financial position. However, an adjusting entry would not debit an expense account and credit a revenue account simultaneously, as this does not align with the purpose of adjusting entries to match revenues with expenses or adjust asset and liability accounts.

An Adjusting Entry Will Not Take the Format of Which