Which of the following accounts could increase as a result of adjusting entries?
A)Prepaid Insurance.
B)Accounts Receivable.
C)Unearned Fees.
D)Office Equipment.

Question

Quizplus · Accepted Answer

Adjusting entries can increase Accounts Receivable when recognizing revenue that has been earned but not yet billed. Prepaid Insurance and Unearned Fees typically decrease with adjusting entries as expenses are recognized and revenues are earned, respectively. Office Equipment is a fixed asset and does not typically increase due to adjusting entries.

Which of the Following Accounts Could Increase as a Result