Match the following types of adjusting entries to the listed situation. (Choices may be used more than once.)
-An office building was acquired for cash

Question

Quizplus · Accepted Answer

When an office building is acquired for cash, it is considered a deferred (prepaid) expense because the cost of the building is an asset that provides economic benefits over a long period of time. As such, the cost should be deferred and recognized over the useful life of the building through regular periodic depreciation.

Match the Following Types of Adjusting Entries to the Listed