The Orange Company made year-end adjusting entries affecting each of the following accounts: Office Salaries Payable credited); Depreciation Expense debited); Unearned Rental Revenue debited); and Prepaid Insurance credited). Which account is likely to appear in Orange's reversing entries?
A) Office Salaries Payable
B) Depreciation Expense
C) Unearned Rental Revenue
D) Prepaid Insurance

Question

Quizplus · Accepted Answer

Reversing entries are typically made for accrued expenses or revenues. Office Salaries Payable is an accrued expense, making it a candidate for reversing entries.

The Orange Company Made Year-End Adjusting Entries Affecting Each of the Following