Which of the following is not considered a basic type of adjusting entry?
A) An entry to convert a liability to a revenue
B) An entry to accrue unpaid expenses
C) An entry to convert an asset to an expense
D) An entry to convert an asset to a liability
E) An entry to accrue uncollected revenue

Question

Quizplus · Accepted Answer

Adjusting entries are made in the accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred. The basic types of adjusting entries include deferrals (prepaid expenses, unearned revenues) and accruals (accrued revenues, accrued expenses). Converting an asset directly to a liability does not fit into these categories, as it does not involve the recognition of expenses or revenues that need to be matched to the accounting period they relate to.

Which of the Following Is Not Considered a Basic Type