Alternative adjusting entries do not apply to
A) accrued revenues and accrued expenses.
B) prepaid expenses.
C) unearned revenues.
D) prepaid expenses and unearned revenues.

Question

Quizplus · Accepted Answer

Alternative adjusting entries are limited to prepaid expenses and unearned revenues, as these accounts can be adjusted in multiple ways to reflect their true balance at the end of an accounting period. Accrued revenues and expenses, on the other hand, only require a single adjusting entry to account for the amount earned or owed but not yet received or paid.

Alternative Adjusting Entries Do Not Apply to