Prepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued revenues are all examples of:
A) Income statement accounts.
B) Asset and equity.
C) Items that require contra accounts.
D) Items that require adjusting entries.
E) Asset accounts.

Question

Quizplus · Accepted Answer

Prepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued revenues are all items that require adjusting entries in order to properly reflect the financial position of the company. These items are not necessarily reflected accurately in the accounts solely through regular business transactions, and require periodic adjustments to ensure financial statements are accurate.

Prepaid Expenses, Depreciation, Accrued Expenses, Unearned Revenues, and Accrued Revenues