Which of the following account balances will typically be decreased as a result of adjusting entries?
A)Supplies
B)Cash
C)Interest Payable
D)Accumulated Depreciation

Question

Quizplus · Accepted Answer

Interest Payable would be increased if interest has been incurred but not paid at the end of an accounting period.As cash is received or paid,it is recorded in the accounting system;adjusting journal entries never involve cash.Accumulated Depreciation is increased for the amount of Depreciation Expense recorded for the period.Supplies is an asset that is created when cash is paid in advance;the account is reduced when the related expense is recorded in adjusting entries.

Which of the Following Account Balances Will Typically Be Decreased