Which of the following is an example of an adjusting entry?
A) The payment of wages which have been accrued
B) The collection of an accounts receivable
C) The return of defective inventory
D) The accrual of interest expense

Question

Quizplus · Accepted Answer

Adjusting entries are made at the end of an accounting period to update accounts that have not been recorded yet. Accruing interest expense is an example of an adjusting entry because interest expense is recorded as it is incurred, not when the payment is made.

Which of the Following Is an Example of an Adjusting