An example of an account that could be included in an accrual adjustment for expense is:
A) Accounts Receivable.
B) Interest Payable.
C) Prepaid Insurance.
D) Accumulated Depreciation.

Question

Quizplus · Accepted Answer

Accrual adjustments are made to record expenses or revenues that have been incurred but not yet recorded. Interest payable is an example of an expense that may have been incurred but not yet recorded, and would require an accrual adjustment to properly reflect it in the financial statements. Accounts Receivable, Prepaid Insurance, and Accumulated Depreciation are not examples of expenses that require accrual adjustments.

An Example of an Account That Could Be Included in an Accrual