Which of the following could not be an adjusting entry?
A)An increase in an expense and a decrease in an asset
B)A decrease in a liability and an increase in a revenue
C)A decrease in a asset and a decrease in a liability
D)An increase in an expense and an increase in a liability

Question

Quizplus · Accepted Answer

Adjusting entries typically involve one income statement account (revenue or expense) and one balance sheet account (asset or liability). Option C involves two balance sheet accounts (an asset and a liability), which is not characteristic of adjusting entries.

Which of the Following Could Not Be an Adjusting Entry