Which of the following pairs of accounts could not be included in the same adjusting entry?
A)Unearned Revenue and Service Revenue
B)Wages Expense and Wages Payable
C)Interest Expense and Interest Receivable
D)Rent Expense and Rent Payable

Question

Quizplus · Accepted Answer

Interest Expense and Interest Receivable would not be included in the same adjusting entry because they represent opposite transactions: Interest Expense is an expense incurred from borrowing money, while Interest Receivable is an asset account representing interest income that is to be received. Adjusting entries typically involve a pairing of an expense or revenue account with a related payable or receivable account, but not in the manner that involves recording both an expense and a receivable for the same transaction.

Which of the Following Pairs of Accounts Could Not Be