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

Question

Quizplus · Accepted Answer

Prepaid expenses, unearned revenues, accrued expenses, accrued revenues, and depreciation are all examples of items that require adjusting entries at the end of the accounting period to ensure the accurate reporting of financial information. These items are not recorded or recognized at the time of the initial transaction but impact the financial statements over a period of time.

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