Which of the following is most likely to result in an adjusting entry at the end of the period?
A) Payment of two months' insurance in advance
B) Payment of one month's rent
C) Owner's withdrawals
D) Owner's investment

Question

Quizplus · Accepted Answer

Payment of two months' insurance in advance is most likely to result in an adjusting entry at the end of the period because it is a prepaid expense, an asset that will be used up over time and needs to be adjusted to reflect the expense incurred during the period.

Which of the Following Is Most Likely to Result in an Adjusting