An example of an adjusting entry is
A)cash collections from credit customers.
B)payment of the principal and interest on a note.
C)recognizing rent expense by reducing Prepaid Rent.
D)declaring a cash dividend.
E)buying inventory on open account.

Question

Quizplus · Accepted Answer

Recognizing rent expense by reducing Prepaid Rent is an example of an adjusting entry. This entry is made to adjust the accounts for the portion of the rent expense that has been incurred but not yet recorded in the accounts.

An Example of an Adjusting Entry Is