Which of the following adjustments may be reserved?
A) The adjustment to Record Depreciation Expense
B) The adjustment to Allocate Prepaid Insurance to the current period
C) The adjustment to Accrue Salaries Payable
D) The adjustment to determine Supplies Expense for the period

Question

Quizplus · Accepted Answer

Accruing Salaries Payable involves estimating the amount of wages earned by employees but not yet paid out. This estimate is subject to change, so this adjustment may be reserved. The other adjustments listed are based on historical information and should not be subject to change, so they would not be reserved.

Which of the Following Adjustments May Be Reserved